You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.? Acquisition of Target Co. by Acquirer Ltd.Target Share Price ($/sh.)$85.40Acquisition Premium15%Diluted Shares Outstanding (MM) 670Target Total Debt$3,562Target Cash and Cash Equivalents$5,147 % Debt Financing40%% Equity Financing60%Equity Financing Fees4.0%Debt Financing Fees1.5%Other Transaction Costs$800

An acquisition is when one company purchases most or all of another company's shares to gain control…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.?

Acquisition of Target Co. by Acquirer Ltd.
Target Share Price ($/sh.)	$85.40
Acquisition Premium	15%
Diluted Shares Outstanding (MM)	670
Target Total Debt	$3,562
Target Cash and Cash Equivalents	$5,147

% Debt Financing	40%
% Equity Financing	60%
Equity Financing Fees	4.0%
Debt Financing Fees	1.5%
Other Transaction Costs	$800

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