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37. ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share while XYZ has 2,500 shares
37. ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share while XYZ has 2,500 shares outstanding at a price of $28 a share. ABC is acquiring XYZ for $75,000 in cash. The synergy of the acquisition is $8,000. What is the net present value of acquiring XYZ to ABC? (b) (C) (d) $2,000 $3,000 $6,000 $4,000
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