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Q22 1 Point Red is being acquired by Green for 22,000 worth of Green equity. Red has 3,330 shares outstanding with a market value of
Q22 1 Point Red is being acquired by Green for 22,000 worth of Green equity. Red has 3,330 shares outstanding with a market value of 2.5 a share. Green has 7,000 shares of equity outstanding at a price of 13.2 a share. The net present value of the acquisition is 9,275. How many new shares of Green equity will be issued to complete this acquisition? Choice 1 of 5:1,950 shares. Choice 2 of 5:None of these are correct. Choice 3 of 5:1,750 shares Choice 4 of 5:1,503 shares Choice 5 of 5:1,956 shares
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