Question
Suppose that before A acquired B, market values of companies A and B were $500,000 and $200,000, respectively, the number of shares of A and
Suppose that before A acquired B, market values of companies A and B were $500,000 and $200,000, respectively, the number of shares of A and B were 25,000 and 20,000, respectively
a) If the M&A deal price is $11 with exchange ratio of 0.55, then A needs to issue 10,000 shares. b) If the M&A deal price is $11 with exchange ratio of 0.55, then A needs to issue 20,000 shares. c) If the M&A deal price is $11 with exchange ratio of 0.55, then A needs to issue 5,500 shares. d) If the M&A deal price is $11 with exchange ratio of 0.55, then A needs to issue 11,000 shares
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