Taggart Transcontinental and Phoenix-Durango have entered into a stock swap merger agreement whereby Taggart will pay a 30% premium over Phoenix-Durango's premerger price. If Taggart's premerger price per share was $15 and Phoenix-Durango's was $30, then the exchange ratio that Taggart will offer is closest to: Answer choices: A) 2.6:1 B) 1.8:1 C) 2.0:1 D) 0.4:1

Taggart Transcontinental and Phoenix-Durango have entered into a stock swap merger agreement whereby Taggart will pay a 30% premium over Phoenix-Durango's premerger price. If Taggart's premerger price per share was $15 and Phoenix-Durango's was $30, then the exchange ratio that Taggart will offer is closest to: Answer choices: A) 2.6:1 B) 1.8:1 C) 2.0:1 D) 0.4:1

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 7P

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