Question

has 1,400 shares outstanding at a market price per share of $10.80. has 1,750 shares outstanding at a market price of $13 a share. Neither firm has any debt. is acquiring for $16,500 in cash. What is the merger premium per share

Answer 1

Answer:

Merger premium =0.98

Explanation:

Merger premium =Acquistion cost/shares outstanding - market price per share

Merger premium =(16500/1400)-$10.80

Merger premium =0.98