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The answer is C, wanna know how to get the answer. Thank you Company A is planning to acquire Company B. After the acquisition there
The answer is C, wanna know how to get the answer. Thank you
Company A is planning to acquire Company B. After the acquisition there will be an estimated increase in joint earnings for a present value of $20 million. At the moment (before the acquisition) company A's shares trade for $178 and there are 200,000 shares outstanding. Company B's shares trade for 212 each and there are 300,000 shares outstanding. The boards of directors of the two companies agree that 70% of the increase in earnings will go to Company B's shareholders and the rest to Company A's shareholders. The acquisition will be paid with shares of Company A, and A is planning to issue 400,000 new shares. How many shares of company A will B's shareholders receive after the acquisition? A. 0.64 shares of A for each share of B. B. 0.76 shares of A for each share of B. C. 1.30 share of A for each share of B D. 1.52 shares of A for each share of B. E. I choose not toStep by Step Solution
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