What is the merger premium per share


Problem

Paula Lid and Jones Inc are financed with equity. Paula has 2,750 shares outstanding at a market price of $18.00 a share. Jones has 3,000 shares outstanding at a price of $23.00 a share. Jones is acquiring Paula for $55,000 in cash. What is the merger premium per share?

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Finance Basics: What is the merger premium per share
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