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The following data on a merger are given: Firm A price per share $100, total earnings $500, shares outstanding 100, and total value $10,000.
The following data on a merger are given: Firm A price per share $100, total earnings $500, shares outstanding 100, and total value $10,000. The corresponding figures for firm B are $10, 300, 40, and $400. The total value of the Firm AB is $11,000. Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. What will be the postmerger price per share for Firm A's stock if Firm A pays in cash? (0 decimals)
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