Acquiring Company is considering the acquisition of Target Company in which you conclude that total synergy...

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Acquiring Company is considering the acquisition of Target Company in which you conclude that total synergy of the merger is 2 million. You are going to share 40% of the synergy to the target shareholders. Earnings available for common stock Number of shares of common stock outstanding Market price per share Acquiring Co. $500,000 500,000 $30.00 What is your initial offer price per share of the Target Co.? Target Co. $300,000 200,000 $20.00 If the transaction is using 100% of Acquiring Co.'s stock, what is the exchange ratio? If the transaction is using 100% of Acquiring Co.'s stock and assuming that the first year earnings are shown in the table, what is the post-merger EPS of the combined company? If the transaction is using 100% of Acquiring Co.'s stock, the acquisition is Acquiring Company is considering the acquisition of Target Company in which you conclude that total synergy of the merger is 2 million. You are going to share 40% of the synergy to the target shareholders. Earnings available for common stock Number of shares of common stock outstanding Market price per share Acquiring Co. $500,000 500,000 $30.00 What is your initial offer price per share of the Target Co.? Target Co. $300,000 200,000 $20.00 If the transaction is using 100% of Acquiring Co.'s stock, what is the exchange ratio? If the transaction is using 100% of Acquiring Co.'s stock and assuming that the first year earnings are shown in the table, what is the post-merger EPS of the combined company? If the transaction is using 100% of Acquiring Co.'s stock, the acquisition is

Answer rating: 100% (QA)

a Your initial offer price per share of the Target Co is 5000 b If the transaction is ... View the full answer