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Buffalo is analyzing the possible acquisition of TruMed Co. Buffalo's market value is $2,800,000 and its market price per share is $40. TruMed' market value

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Buffalo is analyzing the possible acquisition of TruMed Co. Buffalo's market value is $2,800,000 and its market price per share is $40. TruMed' market value is $1,030,000. Buffalo estimates the incremental value after purchasing TruMed is $270,000. a. If Buffalo makes a cash offer with a total purchase price of $1,230,000, what is the NPV of the acquisition? What will the share price of Buffalo be after the announcement of the acquisition? What is the combined firm value after the completion of the acquisition? b. Suppose Buffalo would like to make a stock offer that has the same NPV as the cash offer in part a. How many shares of \$uffalo should be offered to TruMed shareholders? What is the fraction of the combined firm that will be held by TruMed shareholders after the completion of the acquisition? What is the combined firm value

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