In august 2008 apburn inc entered into an agreement to


In August 2008, Apburn Inc. entered into an agreement to purchase all of the outstanding shares of Ballard Corp. for $80 per share. Immediately prior to the Apburn Inc.’s bid, the shares of Ballard Corp. traded at $40 per share. The number of outstanding shares at the time of the announcement was 82 million. The book value of interest-bearing liabilities on the balance sheet of Ballard Corp. was $1.30 billion. a. Estimate the cost of this acquisition to the shareholders of Apburn Inc. (2 points) b. What value did Apburn Inc. place on the control of Ballard Corp.?

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Financial Management: In august 2008 apburn inc entered into an agreement to
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