You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What...
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Finance
You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the total expected equity financing for Acquirer Ltd.s purchase of Target Co., at the assumed 60-40% equity and debt financing deal mix provided?
| Acquisition of Target Co. by Acquirer Ltd. | |
| Target Share Price ($/sh.) | $85.40 |
| Acquisition Premium | 15% |
| Diluted Shares Outstanding (MM) | 670 |
| Target Total Debt | $3,562 |
| Target Cash and Cash Equivalents | $5,147 |
| % Debt Financing | 40% |
| % Equity Financing | 60% |
| Equity Financing Fees | 4.0% |
| Debt Financing Fees | 1.5% |
| Other Transaction Costs | $800 |
$38,529
$39,480
$26,320
$25,686
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