Question: Calculate the equity value in a fixed exchange ratio structure given the following information. Transaction Details: TargetCos shareholders will receive one share of AcquirerCos common

Calculate the equity value in a fixed exchange ratio structure given the following information.

Transaction Details:

TargetCos shareholders will receive one share of AcquirerCos common stock for every four shares of TargetCos common stock. AcquirerCos share price prior to the announcement was $20.00. TargetCo has 25 million shares outstanding.

$125.0mm
$100.0mm
$80.0mm
$50.0mm

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