The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading at $47 per share

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The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading at $47 per share and LE is trading at $23 per share, implying a premerger value of LE of $9.6 billion. If the projected synergies are $1.95 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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