Question
TJs and Corner Grocery are all-equity firms. TJs has 2,500 shares outstanding at a market price of $16.70 a share. Corner Grocery has 3,000 shares
TJs and Corner Grocery are all-equity firms. TJs has 2,500 shares outstanding at a market price of $16.70 a share. Corner Grocery has 3,000 shares outstanding at a price of $22.50 a share. Corner Grocery is acquiring TJs for $45,000 in cash. What is the merger premium per share?
Multiple Choice
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$0
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$1.30
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$1.11
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$1.28
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$.32
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
