Ginormous Oil entered into an agreement to purchase all of the outstanding shares of Slick Company for $60 per share. The number

Question

3 years ago

8

Ginormous Oil entered into an agreement to purchase all of the outstanding shares of Slick Company for $60 per share. The number

of outstanding shares at the time of the announcement was 82 million. The book value of liabilities on the balance sheet of Slick Co. was $1.46 billion. What was the cost of this acquisition to the shareholders of Ginormous Oil?A. $1.46 billionB. $3.46 billionC. $4.92 billionD. $6.38 billionE. $8.38 billionF. None of the above.

Business

1 answer:

irga5000 [103] · Answer 1 · 2022-05-12T08:28:35+03:00

irga5000 [103]3 years ago

5 0

Answer:

C. $4.92 billion

Explanation:

Acquisition cost refers to the cost a company pays for assets such as shares or fixed assets like machinery. In this case, the company paid $60 * 82 million, being $4.92 Billion.