I recently encountered the following question and was a bit stumped. If any of you monkey's are able to lend a hand it would be much appreciated.
Assume that the Sources & Uses is for the purchase of a company in which 100% of the shares are acquired and 100% of the existing debt is retired. Contingent Notes refer to a contingent obligation based on the performance of the company after the acquisition and are part of the acquisition consideration.
Sources
* Debt: 125
* Target Company Cash: 20
* Equity: 91
* Contingent Notes: 19
Total Sources: 255
Uses
* Purchase Shares: 85
* Retire Existing Debt: 160
* Transaction Fees: 10
Total Uses: 255
There are 35 million shares outstanding of the target company, 10% of the shares are rolled over, and all of the contingent notes are issued to current equity holders. What is the total cash paid to shareholders excluding the cash paid for shares rolled over?