What exchange ratio would make the merger terms equivalent

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Bryce has asked you to analyze the financial aspects of the potential merger. Specifically, he has asked you to answer the following questions:

Problem 1. Suppose Hybrid shareholders will agree to a merger price of $68.75 per share. Should Birdie proceed with the merger?

Problem 2. What is the highest price per share that Birdie should be willing to pay for Hybrid?

Problem 3. Suppose Birdie is unwilling to pay cash for the merger but will consider a stock exchange. What exchange ratio would make the merger terms equivalent to the original merger price of $68.75 per share?

Problem 4. What is the highest exchange ratio Birdie would be willing to pay and still undertake the merger

Reference no: EM132962667

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