How many of its shares should firm offer in exchange

Reference no: EM131538461

Firm A is planning on merging with Firm B. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 per share. Firm B has 750 shares outstanding at a price of $15 a share. The merger will create $200 of synergy. How many of its shares should Firm A offer in exchange for all of Firm B's share if it want its acquisition cost to be $12,000?

Reference no: EM131538461

Questions Cloud

What is the price of a two-year european call option : What is the price of a two-year European Call Option with strike price $95, written on MTC stock?

Retained earnings to be used in capital budgeting analysis : The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis.

Determine if the program to reduce water usage is successful : Anheuser-Busch InBev is attempting to reduce its water usage. How could a company manager use a process cost summary.

What is the opportunity cost of typical college education : What's the opportunity cost of typical college education? What's your opportunity cost? What's your opinion about staying or dropping out from the college?

How many of its shares should firm offer in exchange : How many of its shares should Firm A offer in exchange for all of Firm B's share if it want its acquisition cost to be $12,000?

Prepare journal entries to record the production activities : Prepare journal entries to record the following production activities.

Find the monthly insurance on the house : Find the monthly insurance on the house. List 3 assumptions that you make about this purchase. After each, explain why the assumption is important.

What challenges do you foresee in trying to plan : Explain how you would approach a health education program for the cultural group you have written about for your SLP.

Limitations of trait theory of leadership : Highlight the strengths and limitations of Trait Theory of leadership. Select an effective leader to use for this Discussion.

User Account

All Pages