Question
Using the following information to answer questions from 25-26. Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total
Using the following information to answer questions from 25-26. Consider the following premerger information about Firm A and Firm B: Firm A Firm B Total earnings $2,100 $750 Shares outstanding 900 300 Price per share $60 $12 Assume that Firm A acquires Firm B via an exchange of stock at a price of $13 for each share of B's stock. Both A and B have no debt outstanding. Please Show Work. Thanks.
What will be the share price of A be after the merger if there are no synergy gains?
| A. | $55.94 | |
| B. | $59.69 | |
| C. | $51.98 | |
| D. | $50.99 |
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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
0415720060, 978-0415720069
