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YNL Inc. is considering the acquisition of the Target Inc.YAL has 111 million shares outstanding and the stock price is $3.03. Torget has a market
YNL Inc. is considering the acquisition of the Target Inc.YAL has 111 million shares outstanding and the stock price is $3.03. Torget has a market capitalization of $395 million and has 50 million shores outstanding. The combined entity will be worth $1.047 million A IF YALissues 99 million new shares to acquire Target, what is the NPV of the acquisition to YAL? B. What is the premium (in %) received by Target's shareholder in Part A? Cif the synergy will be equally shared by the two groups of shareholders, what is the exchange ratio? D. What is the maximum number of shares YAL. would issue to acquire Target
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