Calculate the Fixed Exchange Ratio Based on the Following Transaction

question 17

Multiple Choice

Calculate the fixed exchange ratio based on the following transaction details.

Transaction Details:
AcquirerCo agrees to purchase TargetCo in an all-stock transaction valued at $2.0 billion.TargetCo's shareholders will receive one share of AcquirerCo's stock for every four shares of TargetCo stock they own.

• A)4
• B).25
• C)1.00
• D).5

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