Consider the following information for two all-equity firms, Firm A and Firm B: Firm A Firm...
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Consider the following information for two all-equity firms, Firm A and Firm B: Firm A Firm B $3,000 Total earnings Shares outstanding Price per share 600 $ 70 $1,100 400 $ 15 Firm A is acquiring Firm B by exchanging 100 of its shares for all the shares in Firm B. a)What is the cost of the merger if the merged firm is worth $63,000? (20 points) Consider the following information for two all-equity firms, Firm A and Firm B: Firm A Firm B $3,000 Total earnings Shares outstanding Price per share 600 $ 70 $1,100 400 $ 15 Firm A is acquiring Firm B by exchanging 100 of its shares for all the shares in Firm B. a)What is the cost of the merger if the merged firm is worth $63,000? (20 points)
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Related Book For
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
Posted Date:
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