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What is the amount($) of offer value (MCAP) for TargetCo? 1) 8500 2) 7250 3) 11250 4)10000 On April 1st 2014, Aqcuirerco acquired TargetCo's 100%
What is the amount($) of offer value (MCAP) for TargetCo?
1) 8500
2) 7250
3) 11250
4)10000
On April 1st 2014, Aqcuirerco acquired TargetCo's 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio Structure based on basic shares outstanding. According to the terms of the agreement, AcquirerCo delivered its 150 mil shares to TargetCo in exchange of TargetCo's 100% basic shares. Assumptions are as shown below ($ in million, except per share data; shares in millions). $25 $75 100 $900 $150 $350 $200 Offer Price Per Share Acquirer Share Price Acquirer Shares Exchanged TargetCo's Debt TargetCo's Preferred Stock TargetCo's Minority Interest TargetCo's Cash TargetCo's Sales (2014:Q1 Reported Financial Statement) TargetCo's Sales (2013:Q4 Reported Financial Statement) TargetCo's Sales (2013:Q3 Reported Financial Statement) TargetCo's Sales (2013:Q2 Reported Financial Statement) TargetCo's Sales (2013:Q1 Reported Financial Statement) Tranches Number of Shares (mil) Exercise Price #1 100 $26 #2 150 $28 #3 250 $32 $1500 $3750 $3000 $2000 $1250 On April 1st 2014, Aqcuirerco acquired TargetCo's 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio Structure based on basic shares outstanding. According to the terms of the agreement, AcquirerCo delivered its 150 mil shares to TargetCo in exchange of TargetCo's 100% basic shares. Assumptions are as shown below ($ in million, except per share data; shares in millions). $25 $75 100 $900 $150 $350 $200 Offer Price Per Share Acquirer Share Price Acquirer Shares Exchanged TargetCo's Debt TargetCo's Preferred Stock TargetCo's Minority Interest TargetCo's Cash TargetCo's Sales (2014:Q1 Reported Financial Statement) TargetCo's Sales (2013:Q4 Reported Financial Statement) TargetCo's Sales (2013:Q3 Reported Financial Statement) TargetCo's Sales (2013:Q2 Reported Financial Statement) TargetCo's Sales (2013:Q1 Reported Financial Statement) Tranches Number of Shares (mil) Exercise Price #1 100 $26 #2 150 $28 #3 250 $32 $1500 $3750 $3000 $2000 $1250Step by Step Solution
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