what is a 50-50 stock cash purchase?
3 Answer(s)
Binny
Since this is an exam question, I will try to guide you without giving the answer.
The valuation of any company is stock price x number of shares.
From the question above you will find data for both these variables. Now you have arrived at the company valuation.
Next, the question says that the acquirer paid only 50% of the value in cash. So cash money paid to the shareholders will be 50% of the company valuation that you have already determined.
Let me know if you get it.
Oct 22 2013 10:40 AM
The valuation of any company is stock price x number of shares.
From the question above you will find data for both these variables. Now you have arrived at the company valuation.
Next, the question says that the acquirer paid only 50% of the value in cash. So cash money paid to the shareholders will be 50% of the company valuation that you have already determined.
Let me know if you get it.
babatunde_jacob
50-50 cash stock purchase is used in equity. After the valuation of the company, the Investors were asked to invest into the company by paying half of the investment money in cash to the shareholder
Jan 26 2015 05:44 PM