Two all-equity firms are exploring a merger opportunity with the potential to create $160,000 of synergy....
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Two all-equity firms are exploring a merger opportunity with the potential to create $160,000 of synergy. The acquirer has agreed to pay $42 in cash for each of the 20,000 shares outstanding of the target firm. However, the target's shares are currently trading for $35. Also, there are 60,000 publicly traded shares of the acquiring firm, and each share is currently worth $54. What should be the price per share of the acquirer following the combination if the offer is accepted? Two all-equity firms are exploring a merger opportunity with the potential to create $160,000 of synergy. The acquirer has agreed to pay $42 in cash for each of the 20,000 shares outstanding of the target firm. However, the target's shares are currently trading for $35. Also, there are 60,000 publicly traded shares of the acquiring firm, and each share is currently worth $54. What should be the price per share of the acquirer following the combination if the offer is accepted?
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The acquirer is paying 42 in cash for each of the 20000 shares outstanding of the target firm The ta... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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