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.

Question 5 options:

	If the deal price is $12 per share and exchange ratio is 0.6, then the share holders of the bidder company will own 71% and those of of target company will own 39% of the combined company.
	If the deal price is $12 per share and exchange ratio is 0.6, then the share holders of the bidder company will own 56% and those of of target company will own 44% of the combined company.
	If the deal price is $12 per share and exchange ratio is 0.6, then the share holders of the bidder company will own 68% and those of of target company will own 32% of the combined company.
	If the deal price is $12 per share and exchange ratio is 0.6, then the share holders of the bidder company will own 60% and those of of target company will own 40% of the combined company.