If one company acquires the assets of another company say 5 billion by issuing an additional set

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If one company acquires the assets of another company say 5 billion by issuing an additional set an equity. Combined firm has assets of 10 billion and market cap of equity of 5 billion and YTM on outstanding debt is 6%

What is expected return on equity. Write the formula and show working.

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Sep 19, 2023 04:41 AM

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If one company acquires the assets of another company say 5 billion by issuing an additional set

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Foundations of Financial Management

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