Question
the following data on a mergeris given: firm a firm b Firm Ab Price per share $100 $10 total earnings $1,000. $600 share outstandings. 200
the following data on a mergeris given:
firm a firm b Firm Ab
Price per share $100 $10
total earnings $1,000. $600
share outstandings. 200 80
total value $20,000 $800 $22,000
Firm A has proposed to acquire Firm B at a price of $20 per shareof Firm B. What will be the post merger price per share for Firm A's stock if Firm A paysby cash?
Select one:
a.$108
b.$110
c.$102
d.$114
e.None of the above
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
