Final answer:
The transaction value for the acquisition of Target Co. by Acquirer Ltd. is $65,801,700,000.
None of the given options is correct
Step-by-step explanation:
To calculate the transaction value for the acquisition of Target Co. by Acquirer Ltd., we can use the given details:
- 1. Target Share Price ($/sh.): $85.40
- 2. Acquisition Premium: 15%
- 3. Diluted Shares Outstanding (MM): 670
To find the transaction value, we need to follow these steps:
Step 1: Calculate the acquisition premium amount
Acquisition Premium = Target Share Price * Acquisition Premium
Acquisition Premium = $85.40 * 15% = $12.81
Step 2: Determine the total consideration
Total Consideration = (Target Share Price + Acquisition Premium) * Diluted Shares Outstanding
Total Consideration = ($85.40 + $12.81) * 670 MM = $98.21 * 670 MM = $65,801,700,000
Therefore, the transaction value for the acquisition of Target Co. by Acquirer Ltd. is $65,801,700,000.
Please note that the given options ($57,218, $65,801, $64,216, $55,633) do not match the calculated transaction value, indicating that none of the options provided is correct.
Your question is incomplete, but most probably the full question was:
You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.?
$57,218
$65,801
$64,216
$55,633
Acquisition of Target Co. by Acquirer Ltd.
Target Share Price ($/sh.) $85.40
Acquisition Premium 15%
Diluted Shares Outstanding (MM) 670