Acquiring Corporation is considering a takeover of Takeover Target Incorporated. Acquiring has 28 million shares outstanding, whic sell for $25 each. Takeover Target has 14 million shares outstanding, which sell for $13 each. If the merger gains are estimated at $4 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders? Highest price per share

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Acquiring Corporation is considering a takeover of Takeover Target Incorporated. Acquiring has 28 million shares outstanding, which
sell for $25 each. Takeover Target has 14 million shares outstanding, which sell for $13 each. If the merger gains are estimated at $42
million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders?
Highest price
:per share
Transcribed Image Text:Acquiring Corporation is considering a takeover of Takeover Target Incorporated. Acquiring has 28 million shares outstanding, which sell for $25 each. Takeover Target has 14 million shares outstanding, which sell for $13 each. If the merger gains are estimated at $42 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders? Highest price :per share
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