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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

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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

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