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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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
