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An all-equity firm worth $50 billion acquires for $4 billion cash a firm whose post-acquisition value will be $6 billion. The acquiring firm had the
An all-equity firm worth $50 billion acquires for $4 billion cash a firm whose post-acquisition value will be $6 billion. The acquiring firm had the cash and did not need to borrow. The current market value of the target is $3 billion. What is the estimated return to the shareholders of the acquiring firm?
2%
4%
6%
8%
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