Business Finance Homework Help

I’m working on a business case study and need an explanation and answer to help me learn.

1. Answer following case question ( the answer should be about 1 page): Before the offer for Gillette was announced (i.e., at the close of trade on 1/26/2005), P&G’s stock price was $55.44 and the firm had 2,522.583 million shares outstanding (fully diluted). If the proposed merger produced ZERO synergy, what would happen to P&G’s stock price after the merger is completed?

2. Come up with 1 question that can be asked about the case.