Question
5) Firm A can acquire firm B for $120,000 in cash or in shares of firm A stock. The synergy value is $36,000. FIRM A
5) Firm A can acquire firm B for $120,000 in cash or in shares of firm A stock.
The synergy value is $36,000.
FIRM A FIRM B
Number of shares 10000 8000
Price per share $21 $11
What is the value of the post-merger firm if the merger is an all cash deal?
how to get $214,000 as an answer
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
