Answered

Discover a wealth of knowledge and get your questions answered on IDNLearn.com. 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 your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.