Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 28, Problem 12P
Summary Introduction

To derive the share exchange ratio to be offered, given that LI and TI have entered into a stock swap agreement, whereby LI will pay a 40% premium over TI’s pre-merger price. The pre-merger price per share of TI was $40 and the pre-merger price per share of LI was $50.

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