How many shares outstanding will Acquirer have if they are successful in its acquisition?

Question

Quizplus · Accepted Answer

The total outstanding shares of the target company (Target) are 1.5M, and the acquisition terms state that Acquirer will issue 1 share for every 2 shares of Target. Therefore, Acquirer will issue 0.75M shares (half of 1.5M shares) to acquire all outstanding shares of Target. In addition to its current shares outstanding of 1.75M, Acquirer will have a total of 2.5M shares outstanding after the acquisition (1.75M + 0.75M = 2.5M).

How Many Shares Outstanding Will Acquirer Have If They Are