00:02
We'd like to find the total value after merger.
00:06
Let's first find our initial market value of a.
00:10
For a, that's our number of shares times our market price per share, and we get 1 ,875 ,000.
00:24
Now our market value of t is 25 ,000 times 15, which gives us 375.
00:33
Then our total market value before the merger is equal to the sum of these two, and so we get 2 ,250 ,000.
00:49
Now post -merger, we have our total merger value plus our merger gain, and so we get 2 ,650 ,000.
01:11
What about the gains to the shareholders of t? t...