Guided Walkthroughs
Accretion/Dilution — Step 2 of 8: All-stock deal — how many new shares does AlphaCorp issue, and what is the pro-forma share count?
Model answer
New shares issued = purchase equity value / acquirer share price = 250 / 40 = 6.25M shares (equivalently: exchange ratio = 25 / 40 = 0.625 acquirer shares per target share × 10M target shares =…
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