Question
TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizza's share is currently trading at $35, and it set
TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizza's 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 Sausage's shares?
100 Millions
75 Millions
60 Millions
54 Millions
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
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