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Acquisition by exchanging stock

Company R wishes to acquire company S. Company R's stock sells for $100 per share. Company S's stock sells for $40 a share. Due to merger negotiations, company R offers $50 a share. The acquisition is done through an exchange of securities. What is the ratio of exchange?

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Finance Basics: Acquisition by exchanging stock

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Acquisition by exchanging stock

Reference No:- TGS0557775

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What are the implications of efficient markets hypothesis

Q : Acquisition of assets for cash

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Acquisition by exchanging stock

Reference No:- TGS0557775

Recent Questions Asked Finance Basics

Q : What are the implications of efficient markets hypothesis

Q : Acquisition of assets for cash

Q : How much will retained earnings

Q : Explain theory behind dividends valuation approach

Q : Acquisition by exchanging stock

Q : Why did not all investors hold advanced magnetics

Q : Determining the earnings per share

Q : What types of stock does the company have

Q : Why did not investor sell out before price declined sharply

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