Company A offers $30 per share to acquire Company B. Company's B estimated value of equity is
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Question:
Company A offers $30 per share to acquire Company B. Company's B estimated value of equity is $50 million, it has debt of 5 million, and outstanding shares of 2 million. This will probably result in:
A) no change in Company B's stock price
B) a decrease in Company B's stock price
C) an increase in Company A's stock price
D) a decrease in Company A's stock price
E) none of the above
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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