Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Als Market has a market value of $418,900. Lizas has a market value of $724,500. Lizas believes it can create $46,000 of synergy if it

Als Market has a market value of $418,900. Lizas has a market value of $724,500. Lizas believes it can create $46,000 of synergy if it acquires Als for $425,000 in cash. What is the value of the firm following the merger? Assume both firms are all-equity financed.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Business Ethics Making Ethical Decisions

Authors: Alfred A. Marcus, Timothy J. Hargrave

1st Edition

1506388590, 978-1506388595

Students also viewed these Finance questions