Capitol Stores and The Back Corner are all-equity firms. Capitol Stores has 1,750 shares outstanding at a market price of $18.40 a share. The Back Corner has 2,100 shares outstanding at a price of $34 a share. The Back Corner is acquiring Capitol Stores for $34,900 in cash. What is the merger premium per share?

Answer rating: 100% (QA)

To calculate the merger premium per share we need to compare the acquisition price paid per share to ... View the full answer