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Question 18 0/ 1 pts Firm A offers to buy firm B in a 100% share offer. The deal is expected to close in 1
Question 18 0/ 1 pts Firm A offers to buy firm B in a 100% share offer. The deal is expected to close in 1 year. Firm A's stock price is currently priced at $52 per share. The offer is 1 share of A for each share of B conditional on the following: (1) if firm A's share price exceeds $60 at closing, the quantity of shares offered per B share will decrease, so that the offer is capped at $60 of A shares per B share, and (2) if firm B's share price is less than 45 at closing, the quantity of shares offered per B share will increase so that the offer minimum is $45 of A shares per B share. Given the current information regarding firm A, what is the value of this deal? That is, what would be the equivalent cash deal for each B share? -pset5.PNG Enter solution in dollars and cents, rounded to the nearest cent. Precede with "-" symbol if negative. Do not enter "$" symbol. 0.0198 49.6 (with margin: 1) Question 18 0/ 1 pts Firm A offers to buy firm B in a 100% share offer. The deal is expected to close in 1 year. Firm A's stock price is currently priced at $52 per share. The offer is 1 share of A for each share of B conditional on the following: (1) if firm A's share price exceeds $60 at closing, the quantity of shares offered per B share will decrease, so that the offer is capped at $60 of A shares per B share, and (2) if firm B's share price is less than 45 at closing, the quantity of shares offered per B share will increase so that the offer minimum is $45 of A shares per B share. Given the current information regarding firm A, what is the value of this deal? That is, what would be the equivalent cash deal for each B share? -pset5.PNG Enter solution in dollars and cents, rounded to the nearest cent. Precede with "-" symbol if negative. Do not enter "$" symbol. 0.0198 49.6 (with margin: 1)
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