Company A can acquire Company B for $120,000 in the form of either cash or shares. The synergy value of the deal is $50,000. Company A currently has 10,000 shares outstanding trading at a price of $21 per share. Company B currently has 8,000 shares outstanding trading at a price of $11 per share. What will the price per share of the post-merger firm be if payment is made in shares?

Answer rating: 100% (QA)

To do this we must first determine the total number of outstanding shares following the merger This ... View the full answer