How many total shares will be outstanding in merged firm

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Reference no: EM131932591

1. A 20-year bond pays 6% on a face value of $1,000. If similar bonds are currently yielding 5%, what is the market value of the bond? Use annual analysis.

Over $1,100

Under $1,000

Under $900

Not enough information given to tell

2. Firm K is planning on merging with Firm L. Firm K currently has 5,500 shares of stock outstanding at a market price of $28 a share. Firm L has 500 shares outstanding at a price of $16 a share. The merger will create $600 of synergy. Firm K plans to offer a sufficient number of its shares to acquire Firm L at an acquisition cost of $8,200. How many total shares will be outstanding in the merged firm?

5,775

5,608

5,760

5,792

5,749

Reference no: EM131932591

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