Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Investment Analysis

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

3rd edition

111910422X, 978-1119104544, 1119104548, 978-1119104223

More Books

Students also viewed these Finance questions