Estimate the value per share paid to bocellie

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Bocellie has a total value of $6000 million and a debt of $1500 million with 150 million shares outstanding. Chow has a total value of the firm of $42000 million, debt of $2000 million and 1600 million shares outstanding.

Problem a) If Chow intends to acquire Bocellie, what would be an appropriate exchange ratio?

Problem b) If Chow offers 1.5 of its own shares for every Bocellie share, estimate the value per share paid to Bocellie and comment on your assessment of the value of this offer?

Reference no: EM132755313

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