Bavarian Brew is planning on acquiring Bavarian Sausage in a pure exchange merger. Bavarian Brew's stock is currently trading at $35 and they set the exchange ratio at 0.80. Bavarian Sausage has 75 million shares outstanding which are currently trading at $18 a share.
-Refer to Bavarian Merger.What is the transaction value of the merger?
A) $1.5 billion
B) $2.1 billion
C) $750 million
D) $500 million
Correct Answer:
Verified
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