Question 19 options:

Pink Sky Inc. is contemplating the acquisition of White Rock Inc. The values of the two companies, shares outstanding, and their stock prices are given in the table below. Analysts at Pink Sky estimate the synergies from the merger to be $125M. Consider a mixed offer where Pink Sky offers $12.135 of cash and 0.0855 shares in Pink Sky in exchange for each share of White Rock.

What price will the Pink Sky shares trade at after the merger?

PLEASE ANSWER ASAP!!!!!

Pink Sky White Sky Market Value of Firm, V $4,200M$425M Shares Outstanding 35M$12020M$21.25