Cavalier Enterprises has agreed to be acquired by The Fox Hunt for some of The Fox Hunt
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Cavalier Enterprises has agreed to be acquired by The Fox Hunt for some of The Fox Hunt stock. The Fox Hunt currently has 3,300 shares of stock outstanding at a price of$32 a share. Cavalier Enterprises has 2,400 shares outstanding at a price of $26 a share. The synergy of the acquisition is $2,800.a. What is the maximum price The Fox Hunt should pay for Cavalier Enterprises ? Suppose The Fox Hunt agrees to pay $65,000 worth of their stock to acquire Cavalier Enterprises. What is the merger premium per share ? What is the value per share of The Fox Hunt stock after the acquisition? (Assume The Fox Hunt can offer stock at its current price $32/share.
Related Book For
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen
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