Suppose LetsMerge Co. is also targeting another company, YesYou Inc., which has a current value of $71.40 million. Analysts conduct due diligence and estimate the post-merger value of YesYous equity to be $78.54 million. YesYou has 27.20 million shares outstanding.

If the merger analysts expect the synergies to be realized, the maximum price per share that LetsMerge is likely to pay if it is making a cash offer for YesYou Inc. is a)------ per share .

LetsMerge has 40.80 million shares outstanding that are trading at $6.80 per share. Suppose LetsMerge makes an offer to acquire YesYou at $2.31 per share. If the deal goes through, the post-merger value of YesYou to the LetsMerge shareholders is b)......... The total value of the merged companys equity will be c)........

If LetsMerge wanted to issue stock for this merger, how many new shares should LetsMerge issue so that YesYous former stockholders will own 18.46% of the shares of the merged company?

9.24 million shares

5.54 million shares

11.09 million shares

7.39 million shares