Which of the following is both a pro and a con of performing a comparable companies analysis?

a.

It is current data

b.

It is market based

c.

It is quick to perform

d.

It is relative to other companies

Calculate the fixed exchange ratio based on the following transaction details.

Transaction Details:

AcquirerCo agrees to purchase TargetCo in an all-stock transaction valued at $2.0 billion. TargetCos shareholders will receive one share of AcquirerCos stock for every four shares of TargetCo stock they own.

a.

1.00

b.

4

c.

0.25

d.

0.5