What is the cost of the merger to easterns stockholders

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Reference no: EM132055863

Western has a market value of $950 with 50 shares outstanding and a price per share of $19. Eastern has a market value of $3,000 with 120 shares outstanding and a price per share of $25.

Eastern is acquiring Western by exchanging 40 of its shares for all 50 of Western's shares.

What is the cost of the merger to Eastern's stockholders if the merger creates $200 of synergy?

Reference no: EM132055863

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