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Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding.
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Shares outstanding Price per share Firm B 1,400 $32 Firm T 700 $26 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $3,300. If Firm T is willing to be acquired for $28 per share in cash, what is the NPV of the merger? $ 1,900 If Firm T is willing to be acquired for $28 per share in cash, what will the price per share of the merged firm be? If Firm T is willing to be acquired for $28 per share in cash, what is the merger premium
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