Miller Sporting Goods is acquiring Town Line Sports for $327,000 in cash. Currently, Miller Sporting Goods has 12,500 shares of stock outstanding at a market price of $54 a share. Town Line Sports has 12,000 shares outstanding at a price of $26 a share. Neither firm has any debt. The incremental value of the acquisition is estimated to be $16,500. What is the merger premium per share?
merger premium per share = merger price - cost = 327000 - 12000... View the full answer