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Target Company is trading at $20 a share at the end of the year 2006...

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Accounting

Target Company is trading at $20 a share at the end of the year 2006 and has 1 million shares outstanding. Acquirer Corp. is trading at $50 a share and has 3 million shares outstanding. Acquirer offers Target's shareholders of one share of its stock for every two shares of Target Company. For the year ending 12/31/06, Acquirer and Target had earnings of $5 million and $2 million, respectively. The book value of Target's net assets is $12 million and fair value is $15 million as of 12/31/06. The book value of Acquirer's net assets is $35 million and fair value is $48 million as of 12/31/06. How many outstanding shares will Acquirer have if they are successful in its acquisition?

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