Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In an all-stock transaction BA, Inc. wants to acquire GB, Inc for $42.15 per share. See table below. Acquirer(BA, Target(GB, Inc.) Inc.) Net profit $140,750,000

image text in transcribed
In an all-stock transaction BA, Inc. wants to acquire GB, Inc for $42.15 per share. See table below. Acquirer(BA, Target(GB, Inc.) Inc.) Net profit $140,750,000 $31,250,000 Outstanding Shares 56,000,000 93750000 EPS 1.26 1.67 Current Stock 28.12 31.25 Price 1. What is the exchange ratio to the shareholders of GB, Inc.? 2. What is the amount of new shares BA must issue to complete the transaction? 3. What will be the total shares outstanding? 4. What is the post-merger EPS? $1.29/share; 159,687,500: 155,687,500; $1.879/share $1.49/share; 159,687,500; 195,687,500; $.879/share $1.29/share: 139,687,500: 155,687.500; $1.879/share $1.49/share; 139.687,500; 195,687,500: 5.879/share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Recommended Textbook for

Understanding Business Ethics

Authors: Peter A. Stanwick, Sarah D. Stanwick

3rd Edition

9781506303239

Students also viewed these Finance questions