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 Pizzas share is currently trading at $35, and it set

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.

How many shares will TGIT Pizza issue in exchange for TGIT Sausages shares? [ Select ] ["54 million", "60 million", "None of these", "100 million", "75 million"]

What is the total transaction value of the merger? [ Select ] ["$2.1 billion", "$500 million", "$1.89 billion", "$750 million", "None of these"]

If you owned 180 shares of TGIT Sausage, what would be the value of your share holdings after the merger? [ Select ] ["$7000", "$4725", "$3600", "$4500", "None of these"]

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

Step: 3

blur-text-image

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

Financial Accounting The Impact On Decision Makers

Authors: Gary A Porter, Curtis L Norton

7th Edition

1439080526, 9781439080528

More Books

Students also viewed these Finance questions

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

Explain the sources of recruitment.

Answered: 1 week ago

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago