An acquiring company agrees to purchase a target company, where under the terms of the agreement, the target company's shareholders will receive one share of the Acquiring company's stock for every four shares of the Target company's stock they hold. Acquiring the company's share price prior to the announcement was $80.00. Target company has 30 million shares outstanding. What type of M&A transaction is this? Calculate the value of the target per share and the equity value of the target company.

Answer rating: 100% (QA)

This is a stockforstock MA transaction where the acquiring company is using its own stock to pu... View the full answer