Suppose that the price of the target firm before the announcement is 42 and after the announcement it is 47. The price of the acquirer before the announcement is 75 and after it is 75. The acquirer offers to exchange 0.707 shares of the acquirer for each share of the target at the completion of the deal. Compute the deal spread after the announcement. The answer should be given_in decimal form with three decimals. For example, write 0.105 instead of 10.5 or 10.5 % when the correct answer is 10.5 %.

Suppose that the price of the target firm before the announcement is 42 and after the announcement it is 47. The price of the acquirer before the announcement is 75 and after it is 75. The acquirer offers to exchange 0.707 shares of the acquirer for each share of the target at the completion of the deal. Compute the deal spread after the announcement. The answer should be given_in decimal form with three decimals. For example, write 0.105 instead of 10.5 or 10.5 % when the correct answer is 10.5 %.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 3EP

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