Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tiger LLC has market value of $90,000 and 2,000 shares outstanding. Mancut Department Store has market value of $25,000 and 5,000 million shares outstanding. Tiger

Tiger LLC has market value of $90,000 and 2,000 shares outstanding. Mancut Department Store has market value of $25,000 and 5,000 million shares outstanding. Tiger is contemplating acquiring Mancut. Tiger's CFO concludes that the combined firm with synergy will be worth $131,000, and Mancut can be acquired at a price of $32,000. If Selfcut is acquired by cash, what is the stock price of Tiger LLC after the acquisition?

Group of answer choices

$52.50

$49.50

$44.30

$41.80

$32.25

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

Students also viewed these Finance questions