Ashfoam Company has expressed interest in acquiring BK Corporation. Ashfoam presently has 3 million common shares outstanding and a current market price per share is GHS 42. BK Corporation has 2 million common shares outstanding and its current price per share is GHS 30. Ashfoam is offering to purchase a 100% stake in BK Corporation in a stock swap transaction. The exchange ratio of Ashfoam for BK Corp has been estimated as 0.86.

i) How many shares will Ashfoam have to be issue to acquire BK Corporation Farms?

ii) What is the total Ghana Cedi value of the BK Corporation acquisition?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 12 i To acquire BK Co... View the full answer