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BigShark wants to acquire SmallGuppy for $206,250.00 in the form of either cash or stock. The synergy value of the deal is $30,000.00. BigShark has
BigShark wants to acquire SmallGuppy for $206,250.00 in the form of either cash or stock. The synergy value of the deal is $30,000.00. BigShark has 30,000 shares outstanding at a price of $65.00 a share. SmallGuppy has 18,000 shares outstanding at a price of $24.00 a share. What is the NPV of acquiring SmallGuppy when stock financing is used? a) $231,286.96 b $279,427.13 c) $217,184.54 d) $309,883.91 e $253,929.57
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