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In a complex cross-border acquisition, Company A acquires 80% of Company...

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Accounting

In a complex cross-border acquisition, Company A acquires 80% of
Company B for $2.4 billion in a combination of cash, stock, and debt. If
Company A issues 5 million new shares valued at $100 each, assumes $1
billion in debt, and the market value of Company B's remaining shares
increases by 25%, what is the total implied valuation of Company B after the
acquisition?
a) $3.16 billion
b) $2.24 billion
c) $4.28 billion
d) $5.42 billion
e) $6.12 billionIn a complex cross-border acquisition, Company A acquires 80% of
Company B for $2.4 billion in a combination of cash, stock, and debt. If
Company A issues 5 million new shares valued at $100 each, assumes $1
billion in debt, and the market value of Company B's remaining shares
increases by 25%, what is the total implied valuation of Company B after the
acquisition?
a) $3.16 billion
b) $2.24 billion
c) $4.28 billion
d) $5.42 billion
e) $6.12 billion
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