There is a friendly acquisition between Company X & Company Y, where, Company X pays...
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There is a friendly acquisition between Company X & Company Y, where, Company X pays $30 per share of Company Y. The mixed mode of payment is decided at $9 cash payment per share of Company Y and rest 0.5 shares of Company X for each share of Company-Y. Presently Company X and Y have 55 & 35 million shareholders respectively. Current market price per share reported at $23 & $18 respectively for Company X & Y. The cost saving of the deal estimated to be $8 million per year for ever. If the discounting rate applicable to the deal is 10%, estimate the post merger value of Company X including per share price. (Please refrain from using ChatGPT)
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