Suppose that the acquirer has 8 billion shares outstanding, and the target has 6 billion shares outstanding.

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose that the acquirer has

8

billion shares outstanding, and the target has

6

billion shares outstanding. Assume that the acquirer is paying a

25 %

premium for the target

(30

billion for the equity

)

and that the acquirer stock price will stay at

10

dollars a share. What should be the exchange ratio for this merger in a stock deal?

Related Book For answer-question

Linear Algebra And Its Applications

ISBN: 9781292351216

6th Global Edition

Authors: David Lay, Steven Lay, Judi McDonald

See More Books

Posted Date: Mar 15, 2024 03:12 PM

See More Questions

1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
The Best Buy Co. Inc. 10-K report has the following footnote related to leasing activities. The future minimum lease payments under our capital and operating leases by fiscal year (not includ- ing...
Cypress Corporation has regular taxable income of $170,000 (assume annual gross receipts are greater than $5 million) and regular tax liability of $49,550 for 2012. The corporation also has tax...
The following is a dump of an SCTP general header in hexadecimal format. 04320017 00000001 00000000 a. What is the source port number? b. What is the destination port number? c. What is the value of...
True or False: If $P W>0$, then $I R R>M A R R$.
The current assets and current liabilities sections of the balance sheet of Agincourt Company appear as follows. The following errors in the corporation's accounting have been discovered: 1. January...
Step 3: Using the Price and Total Quantity Demanded data from the table above, graph the demand curve on the axes provided (be sure to provide numbers on the axes for price and quantity demanded)....
Determine each of the following for the circuit shown below: 8pts) a) IB = b) Ic= c) VB = d) Vc = RB 500 k-ohms Vcc=15 V Rc 2 k-ohms 3= 100
Overruling a decision of the ICC Pre-Trial Chamber, the ICC Appeals Chamber authorized an investigation by the ICC prosecutor's office into alleged international crimes in Afghanistan, including...
In 2015 CVS announced that it was purchasing Target's 1,672 in-store pharmacies for $1.9 billion. These pharmacies were branded as CVS/pharmacy and remained located in Target stores. About 80 Target...
It's Thursday morning, and you wake up at 7:40, realizing you're going to be late for your 8:00 class. You've already been late twice, and your professor has made it clear the next time, he's...
Discuss the role compensation plays in motivating employees. What factors are likely to retain employees and support job performance and commitment to the organization? Discuss what makes goals...
You must conduct extensive online research to find at least five recent examples of your chosen product's or service's communication mix, including traditional elements and digital platforms. The...
The audit of KBC Solutions by Carlson and Smith, CPAS, was schedukd to end on February 28, 2016. However, Rick Carlson was uncertain whether it could happen. As the review partner, he had just...
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
Let x 1 , x 2 denote the variables for the two-dimensional data in Exercise 1. Find a new variable y of the form y 1 = c 1 x 1 + c 2 x 2 , with c 2 1 + c 2 2 = 1, such that y, has maxi- mum possible...
Let A = PDP -1 and compute A 4 . P=[ 1 3 3].D= [8 2 5
Mention an appropriate theorem in your explanation. Let A and P be square matrices, with P invertible. Show that det(PAP - 1 ) = det A.
Air enclosed in a cylinder has density $ho=1.4 \mathrm{~kg} / \mathrm{m}^{3}$. a. What will be the density of the air if the length of the cylinder is doubled while the radius is unchanged? b. What...
Given the data of the graph, approximately how much energy, in Calories, would a $200 \mathrm{~g}$ rat use during the course of a day? A. 10 B. 20 C. 100 D. 200
The passage proposes that there are quantitative "laws" of biology that have their basis in physical principles, using the scaling of specific metabolic rate with body mass as an example. Which of...

Suppose that the acquirer has 8 billion shares outstanding, and the target has 6 billion shares outstanding.

Question:

Expert Answer:

To determine the exchange ratio for the merger in a stock deal we nee... View the full answer

Linear Algebra And Its Applications

Students also viewed these finance questions