George's Equipment is planning to acquire Nelson Machinery for $65,000 worth of George stock (stock payment). George's currently has 4,600 shares of stock outstanding at a market price of $31 a share. Nelson's has 1,600 shares outstanding at a price of $38 a share. The synergy value of the acquisition is $5,000. How many shares are received by the target shareholders for the acquisition? What is the post-merger stock price per share?

Answer rating: 100% (QA)

Answer To determine the number of shares received by the target shareholders for the acquisition and ... View the full answer