Answered

IDNLearn.com is the perfect place to get detailed and accurate answers to your questions. Find the information you need quickly and easily with our comprehensive and accurate Q&A platform.

Rudy's and Blackstone are all-equity firms. Rudy's has 1,200 shares outstanding at a market price of $36 a share. Blackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $48,000 in cash. What is the merger premium per share

Sagot :

Abiolataiwo2015idn

Answer:

$4

Explanation:

Calculation to determine the merger premium per share

Using this formula

Merger premium per share=(Cash/Shares outstanding)-Market price

Let plug in the formula

Merger premium per share = ($48,000 / 1,200) - $36

Merger premium per share=$40-$36

Merger premium per share=$4

Therefore the merger premium per share is $4

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.