Purchase Solution

Merger - Stock Shares

Not what you're looking for?

Ask Custom Question

The Prad Corporation is considering a merger with the Stone Company which has 400,000 outstanding shares selling for $25. An investment banker has advised that to succeed in its merger Prad Corp. would have to offer $45 per share for Stones's stock. Prad Corp. stock is selling for $30. How many shares of Prad Corp. stock would have to be exchanged to acquire all of Stones's stock?

Purchase this Solution

Solution Summary

The Prad Corporation is considering a merger with the Stone Company which has 400,000 outstanding shares selling for $25. An investment banker has advised that to succeed in its merger Prad Corp. would have to offer $45 per share for Stones's stock. Prad Corp. stock is selling for $30. How many shares of Prad Corp. stock would have to be exchanged to acquire all of Stones's stock?

Purchase this Solution


Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Operations Management

This quiz tests a student's knowledge about Operations Management

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Motivation

This tests some key elements of major motivation theories.