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Both Firms Are 100% Equity-Financed

Question 19

Multiple Choice

Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. What will the price per share be of the post-merger firm if payment is made in stock? A) $25.00 B) $25.38 C) $25.50 D) $25.76 E) $27.30 What will the price per share be of the post-merger firm if payment is made in stock?


A) $25.00
B) $25.38
C) $25.50
D) $25.76
E) $27.30

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