Stock for Stock Merger) A Corporation is considering the acquisition of X Corporation Each corporation has the following data Existing Income Number of Shares A Corporation $8,200,000 621,000 X Corporation $4,200,000 365,000 Synergistic additional benefits from the combination are $1,800,000 What i...

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Stock for Stock Merger) A Corporation is considering the acquisition of X Corporation. Each corporation has the

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Stock for Stock Merger) A Corporation is considering the acquisition of X Corporation. Each corporation has the following data:

Existing Income Number of Shares

A Corporation $8,200,000 621,000

X Corporation $4,200,000 365,000

Synergistic additional benefits from the combination are $1,800,000.

What is the minimum exchange ratio is necessary to keep the X shareholders whole in terms of earnings per share?

What is the maximum exchange ratio would the A Corporation shareholder accept in taking over X Corporation and remain whole in terms of earnings per share?

Posted Date: Jun 10, 2024 09:36 AM

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Stock for Stock Merger) A Corporation is considering the acquisition of X Corporation. Each corporation has the

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