Smith-Miler Merger
Smith Enterprises can acquire Miller, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition for Smith is $35,000. Currently Smith has 25,000 shares outstanding which trade at $29 a share, whereas Miller has 15,000 shares outstanding that trade at $14 a share.
-What is the value of Miller to Smith?
A) $35,000
B) $245,000
C) $210,000
D) $125,000
Correct Answer:
Verified
Q31: Smith-Miler Merger
Smith Enterprises can acquire Miller, Inc
Q32: Bavarian Brew is planning on acquiring Bavarian
Q33: Bavarian Brew is planning on acquiring Bavarian
Q34: Bavarian Brew is planning on acquiring Bavarian
Q35: A transaction in which two or more
Q37: Bavarian Brew is planning on acquiring Bavarian
Q38: The transformation of a public corporation into
Q39: Recent stock market evidence reveals
A) target and
Q40: FASB Statement 141 holds that
A) goodwill is
Q41: The percentage of shares owned that triggers
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents