Solution for QID #20293: On April 1st2014,AqcuirerCoacquiredTargetCo's100%shares. | StudyHelpMe

On April 1st 2014, AqcuirerCo acquired TargetCo's 100% shares. The M&A deal that took place between TargetCo and AcquirerCo with a Fixed Exchange Ratio Structure based on basic shares outstanding. According to the terms of the agreement, AcquirerCo delivered its 150 mil shares to TargetCo in exchange of TargetCo's 100% basic shares. Assumptions are as shown below ($ in million, except per share data; shares in millions). Offer Price Per Share$25 Acquirer Share Price$75 Acquirer Shares Exchanged 100 TargetCo's Debt $900 TargetCo's Preferred Stock $150 TargetCo's Minority Interest$350 TargetCo's Cash$200 TargetCo's Sales (2014:Q1 Reported Financial Statement)$1500 TargetCo's Sales (2013:Q4 Reported Financial Statement)$3750 TargetCo's Sales (2013:Q3 Reported Financial Statement) $3000 TargetCo's Sales (2013:Q2 Reported Financial Statement) $2000 TargetCo's Sales (2013:Q1 Reported Financial Statement) $1250 Tranches Number of Shares (mil) Exercise Price #1 100 $26 #2 150 $28 #3 250 $32 What is the Enterprise value (EV) for TargetCo?