What is the total transaction value of the merger

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Question: TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizza's share is currently trading at $35, and it set the exchange ratio at 0.75. TGIT Sausage has 72 million shares outstanding, which are currently trading at $18 a share.

a) How many shares will TGIT Pizza issue in exchange for TGIT Sausage's shares?

b) What is the total transaction value of the merger?

c) If you owned 180 shares of TGIT Sausage, what would be the value of your share holdings after the merger?

Reference no: EM132758210

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