Question: Firm DK has 7 0 , 0 0 0 outstanding shares each for $ 2 5 , and firm OS has 7 , 5 0

Firm DK has 70,000 outstanding shares each for $25, and firm OS has 7,500 outstanding shares each for $10. Neither firm has any debt. Firm DK can acquire firm OS for $82,500 in the form of cash payment. The synergy value of the deal is expected to be $12,500. What will the price per share be for the post-merger firm?
$25.00
$25,38
$25.50
$27.30
$25.76
Firm DK has 7 0 , 0 0 0 outstanding shares each

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!