What will happen to the price per share of a combined, Financial Management

+44 141 628 6080
[email protected]

What will happen to the price per share of a combined

ABC has 1 million shares outstanding, PPS is $20. It has made a takeover offer of XYZ corporation, which has 1 million shares outstanding with PPS of $3.50. Assuming there are no synergies and acquisition will occur as equity swap with offer price for XYZ of $4.00 per share:

a) what will happen to the price per share of a combined corporation after the offer announcement?

b) what will be the price of ABC and XYZ after announcement?

c) what is the actual premium that ABC will pay for XYZ stock?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Financial Management: What will happen to the price per share of a combined

Reference No:- TGS02729172

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

How social determinants of health affect the physiological

Question: In general, how do the social determinants of health affect the physiological body? Question options

Substance abuse program for teenagers struggling

Question: Substance abuse program for teenagers struggling with addiction. - e.g., what is the rationale or interest in this project?

How you ensure that other team members understand roles

Discuss how you plan to comply with this requirement and explain how you will ensure that other team members understand their roles.

Competence and confidence when imagining or engaging

Question: Jarrett generally feels a sense of competence and confidence when imagining or engaging in communication.

Areas mentioned specifically as wanting to join the eeu

Which of the following areas is mentioned specifically as wanting to join the EEU, even though the states they belong to may wish to be

Patient tokala insists that he never dreams

Problem: Forty-year-old Tokala insists that he never dreams. Research suggests that Tokala probably:

Why consciousness is an especially important

Consciousness is an especially important team member characteristic. Research indicates that mixing highly conscious individuals in a team

Request for Solution File

Ask an Expert for Answer!!

Financial Management: What will happen to the price per share of a combined

Reference No:- TGS02729172

Have a Question? (oR Write a Review)

Recent Questions Asked Financial Management

Q : Micron inc can invest 5000000 in a new technology microns

Q : Distinguish between variability of returns and volatility

Q : Carolina inc is deciding whether to buy or lease a piece of

Q : The probability the stock price will be 59 is 037 otherwise

Q : What will happen to the price per share of a combined

Q : Holtzman clothiers stock currently sells for 34 a share

Q : Suppose a company announces that it has decided to fund an

Q : What is the lump sum needed to fund retirement at an

Q : What would be a simple options strategy to exploit your