Financial position look like before after the acquisition

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The market capitalization and debt of a public firm are $500 million and $1,500 million respectively. The firm has $50 and $150 million of minority interest and preferred stock respectively. Moreover, it has a cash position of $450 million. Explicate how a hedge fund, which feels there is value in this company, can orchestrate a takeover, if it estimates it has to pay a 5% premium for the company’s stock. What will the statement of financial position look like before after the acquisition?

Reference no: EM132011800

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