The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $16 per share

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The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $16 per share and LE is trading for $14 per share, implying a premerger value of LE of approximately

$5.7 billion. If the projected synergies are $1.58 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?

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Corporate Finance

ISBN: 9781292304151

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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