if T takes all of the stock of S in exchange for $24.73 in cash per share and did not make a Section 338
election. Assuming T issues bonds to raise the cash necessary to pay for the acquisition. Also Assuming S had 100 million shares outstanding.
1 how much tax will S shareholders have to pay? assuming long-term
capital gains rates (15%) and had a tax basis in the stock of $10 per share
2 As a shareholder of S, what is better all cash or stock offer?