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4.Barrison is investigating the possible acquisition of Soulmaster. The two firms have the following basic data: Barrison Soulmaster Number of shares3,000,0001,200,000 Current stock price$75.00$25.00 The
4.Barrison is investigating the possible acquisition of Soulmaster. The two firms have the following basic data:
BarrisonSoulmaster
Number of shares3,000,0001,200,000
Current stock price$75.00$25.00
The combined firm will result in a synergy gains of $15m.
c.What is the NPV of the acquisition if Barrison offers one share of Barrison for every two shares of Soulmaster?
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