Figure out the share exchange ratio of Firm A to Firm B where the shareholders of Firm B are indifferent between cash acquisition and stock acquisition.
1. Answer the questions based on the table below. Cash Dividend Stock Repurchases Stock Dividend Value of Operations $900,000,000 $900,000,000 $900,000,000 Value of Cash balance 80,000,000 80,000,000 80,000,000 Total value of firm $980,000,000 $980,000,000 $980,000,000 − Debt 100,000,000 100,000,000 100,000,000 − Preferred stock 80,000,000 80,000,000 80,000,000 Value of equity $800,000,000 $800,000,000 $800,000,000 # of shares […]