Consider the following premerger information about two firms. Firm A is the acquiring firm and Firm...
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Consider the following premerger information about two firms. Firm A is the acquiring firm and Firm B is the target firm. Assume that both firms have no debt outstanding. The synergistic benefits from acquiring Firm B is $5,000 if Firm A acquires Firm B. Item Shares outstanding Price per share Firm A 1,800 Firm B 1,200 $44 $21 What will the price per share of the merged firm be if Firm B is agrees to a merger by an exchange of stock where Firm A pays 1 of its shares for every 4 of Firm B's shares? Enter your answer in the box shown below as dollars with 2 digits to the right of the decimal point. Consider the following premerger information about two firms. Firm A is the acquiring firm and Firm B is the target firm. Assume that both firms have no debt outstanding. The synergistic benefits from acquiring Firm B is $5,000 if Firm A acquires Firm B. Item Shares outstanding Price per share Firm A 1,800 Firm B 1,200 $44 $21 What will the price per share of the merged firm be if Firm B is agrees to a merger by an exchange of stock where Firm A pays 1 of its shares for every 4 of Firm B's shares? Enter your answer in the box shown below as dollars with 2 digits to the right of the decimal point.
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To calculate the price per share of the merged firm we need to determine the total number of shares ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Posted Date:
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