5. The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading at $35 per...

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5. The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading at $35 per share and LE is trading at $25 per share, implying a premerger value of LE of $4 billion. If the projected synergies are $1 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: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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