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  3. you're given the following details of an acquisiti

You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What...

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Finance

You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the total expected equity financing for Acquirer Ltd.s purchase of Target Co., at the assumed 60-40% equity and debt financing deal mix provided?

Acquisition of Target Co. by Acquirer Ltd.

Target Share Price ($/sh.)

$85.40

Acquisition Premium

15%

Diluted Shares Outstanding (MM)

670

Target Total Debt

$3,562

Target Cash and Cash Equivalents

$5,147

% Debt Financing

40%

% Equity Financing

60%

Equity Financing Fees

4.0%

Debt Financing Fees

1.5%

Other Transaction Costs

$800

$38,529

$39,480

$26,320

$25,686

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