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Question 6 10 pts JBLU is acquiring GOL in a stock-swap merger. The companies expect synergies worth $8 million, and they negotiated a friendly merger
Question 6 10 pts JBLU is acquiring GOL in a stock-swap merger. The companies expect synergies worth $8 million, and they negotiated a friendly merger in which GOL and JBLU will each receive an equal share of the synergy gains (i.e., 50%). The trading price and shares outstanding for both companies (before the merger announcement) were as follows: GOL (Tgt) JBLU (Acq) $15.0 $10.0 Share price Shares outstanding 1,000,000 1,000,000 How many shares will JBLU offer for each GOL share (i.e., what is the exchange ratio)? O 2.64 0 O 2.26 O 1.50 O None of the other answers are correct. Alt + A)
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