Value of former Benn with a share of synergy gain =25,800,000.Firm Amber's equity =85,324,000+20,800,000+25,000,000=131,124,000.Proportion of...

50.1K

Verified Solution

Question

Accounting

Value of former Benn with a share of synergy gain =25,800,000.Firm Amber's equity =85,324,000+20,800,000+25,000,000=131,124,000.Proportion of equity given up by Amber =25,800,000/131,124,000=0.1968.Proportion of merged firm shares held by former Benn stockholders = New sharesissued/(old shares + new shares issued)=0.1968.New shares =813,262.Total shares after merger =4,133,262.Price per share in merged firm =131,124,000/4,133,262=31.7241.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students