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Winslow Co. has agreed to be acquired by Ferrier, Inc. for $25,000 worth of Ferrier stock. Ferrier currently has 1,500 shares of stock outstanding at a price of $21 a share. Winslow has 1,000 shares outstanding
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Winslow Co. has agreed to be acquired by Ferrier, Inc. for $25,000 worth of Ferrier stock. Ferrier currently has 1,500 shares of stock outstanding at a price of $21 a share. Winslow has 1,000 shares outstanding at a price of $22. The incremental value of the acquisition is $4,000. What is the merger premium per share?

User Tarun Khurana
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5 votes

Answer:

Merger premium per share = $3

Step-by-step explanation:

Please see attachment

Winslow Co. has agreed to be acquired by Ferrier, Inc. for $25,000 worth of Ferrier-example-1
User Galdor
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