Acquirer Shares Outstanding Target Shares Outstanding Acquirer Share Price Target Share Price Cash Consideration in percent Takeover Premium 800,000 5,000 $8.00 $16.00 25% 10% Given the above data, what is the amount of stock consideration involved in the deal? (Rounding to the closest whole number)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 22E
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Acquirer Shares Outstanding
Target Shares Outstanding
Acquirer Share Price
Target Share Price
Cash Consideration in percent
Takeover Premium
22,000
Given the above data, what is the amount of stock consideration involved in the deal? (Rounding to
the closest whole number)
66,000
5,280,000
800,000
5,000
$8.00
$16.00
1,760,000
25%
10%
Transcribed Image Text:Acquirer Shares Outstanding Target Shares Outstanding Acquirer Share Price Target Share Price Cash Consideration in percent Takeover Premium 22,000 Given the above data, what is the amount of stock consideration involved in the deal? (Rounding to the closest whole number) 66,000 5,280,000 800,000 5,000 $8.00 $16.00 1,760,000 25% 10%
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