What will the price per share of the post merger firm

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Question - Company A can acquire Company B for $120,000 in the form of either cash or shares. The synergy value of the deal is $50,000. Company A currently has 10,000 shares outstanding trading at a price of $21 per share. Company B currently has 8,000 shares outstanding trading at a price of $11 per share. What will the price per share of the post merger firm be if payment is made in shares?

Reference no: EM132789327

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