Company A: EBT $300M, 50M shares at $10, tax rate 50%. Company B: NI $25M. A buys B for 100% stock at a $200M transaction value. Pretax cost synergies needed to break even?

Question

IBPrep · Accepted Answer

50) = $150M. 00.

Company A: EBT $300M, 50M shares at $10, tax rate 50%. Company B: NI $25M. A buys B for 100% stock at a $200M transaction value. Pretax cost synergies needed to break even?

Answer

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Company A: EBT $300M, 50M