Consider the following premerger information about Firm X and Firm Y Firm X Firm Y Total earnings $ 28,000 $ 11,000 Shares outstanding 14,000 14,000 Per share values Market $ 34 $ 13 Book $ 14 $ 5 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium o...

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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings

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Consider the following premerger information about Firm X and Firm Y:

	Firm X	Firm Y
Total earnings	$ 28,000	$ 11,000
Shares outstanding	14,000	14,000
Per-share values:
Market	$ 34	$ 13
Book	$ 14	$ 5

Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $5 per share. Assuming that neither firm has any debt before or after the merger, what are the total assets of Firm X after the merger?

Posted Date: May 18, 2024 04:12 PM

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Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings

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