Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the total number of outstanding shares after the acquisition? There is no synergy. Hint: consider the market cap of the target company and the stock price of acquirer for the added number of shares. EPS # of shares Stock price 400,000. 500,000. 490,000. 550,000. 450,000. 590.000 Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90

Shark Co. is planning to acquire Goldfish Co. by using its own stock. The following information is taken before the acquisition. What will be the total number of outstanding shares after the acquisition? There is no synergy. Hint: consider the market cap of the target company and the stock price of acquirer for the added number of shares. EPS # of shares Stock price 400,000. 500,000. 490,000. 550,000. 450,000. 590.000 Shark Co. $20.00 400,000 $100 Goldfish Co. $30.00 100,000 $90

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 4P

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