Bidder and Target each have 100 shares outstanding. Bidder's stock price is $30 and Target's stock price
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Bidder and Target each have 100 shares outstanding. Bidder's stock price is $30 and Target's stock price is $20, prior to the announcement of Bidder's offer for Target, whereby Bidder offers $30 worth of Newco stock for each share of Target. The market price of Target right after the announcement is $27, and the market price of Bidder is $27.
What is implied price of Newco at the time this merger is executed?
In the question, what is the implied present value of the synergies if this merger is executed?
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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