Suppose an acquirer is buying a target for a price of 3 0 B for the equity
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Question:
Suppose an acquirer is buying a target for a price of B for the equity of the target. The target has no cash and B in debt. The acquirer currently has debt equal to B The acquirer is not using any of its own cash to finance the deal. The acquirer's current equity value is B dollars prior to the deal If the acquirer pays for the acquisition in cash,
what will be The acquirer's total debt after the acquisition ?
what will be The acquirer's current leverage ratio prior to the deal
what will be The acquirer's equity value did not change when the acquisition was announced. The leverage ratio of the acquirer following the deal
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