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Company A is acquiring Company B. Company As share price is $40 and Company B's share price is $30. Company A has 1,200,000 shares outstanding
Company A is acquiring Company B. Company As share price is $40 and Company B's share price is $30. Company A has 1,200,000 shares outstanding and Company B has 1,400,000 shares outstanding. Company A estimates the present value of synergistic benefits from the merger to be $10,000,000. If Company A pays $45,000,000 cash to Company B's shareholders, what is the NPV of this acquisition?
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