Delta Corporation is trading at $60/sh. and has 1,000,000 shares outstanding. Delta is buying Gamma Corporation for $30/sh. in a stock exchange in the ratio 5 Delta shares for each Gamma share. Gamma has 200,000 shares outstanding and trades at $20/sh. The merger gain is $5,000,000.

What is the projected price per share of the merged entity?

Answer rating: 100% (QA)

To determine the projected price per share of the merged entity we need to calculate the total value ... View the full answer