Suppose Company Amalgamation’s stocks are selling for Tk. 50 in the market and stocks of company target
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose Company Amalgamation’s stocks are selling for Tk. 50 in the market and stocks of company target are selling for Tk. 25. Both of them have 1 million shares outstanding. EPS of company amalgamation is 2.5 Tk. and company’s target is 1 Tk.
Requirement:
1) What should be the post-merger EPS, if company amalgamation acquires company target?
2) Suppose Company amalgamation pays premium of 20%. For company target stock, how many shares of company amalgamation has to be given to company’s target shareholders in consideration for target shares.
Related Book For
Posted Date: