TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizzas share is currently trading at $35, and it set the exchange ratio at 0.75. TGIT Sausage has 72 million shares outstanding, which are currently trading at $18 a share.

a) How many shares will TGIT Pizza issue in exchange for TGIT Sausages shares?

100 Million

75 Million

60 Million

54 Million

none of the above

b) What is the total transaction value of the merger?

$750 million

$2.1 billion

$1.89 billion

$500 million

c) If you owned 180 shares of TGIT Sausage, what would be the value of your share holdings after the merger?

$4725

$7000

$3600

$4500

none of the above

you have to choose one of the following