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Your company is currently worth $500 million, with 6.25 million shares outstanding. Your competitor has a market value of $200 million, with 10 million shares

Your company is currently worth $500 million, with 6.25 million shares outstanding. Your competitor has a market value of $200 million, with 10 million shares outstanding. You believe the value of the two firms together will be $740 million. The two firms boards have agreed on an acquisition in which your company will offer 3.1 million shares for full ownership of the competitor. Should you do this acquisition?

a. Yes

b. No

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