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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.

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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. Shares outstanding Price per share Firm B 1,500 $32 Firm T 700 $26 Firm has estimated that the value of the synergistic benefits from acquiring Firm Tis $3,500. * Firm T is willing to be acquired for $30 per share in cash, what is the NPV of the merger? $ 700 If Firm T is willing to be acquired for $30 per share in cash, what will the price per share of the merged firm be? 53247 106 If Firm T is willing to be acquired for $30 per share in cash, what is the merger premium? 2.600 1 Suppose Firm Tis agreeable to a merger by an exchange of stock. If offers one of its shares for every 4 of T's shares, what will the price per share of the merged firm be? 0.45 points $ 37,17 01:45 Suppose Firm Tisagreeable to a merger by an exchange of stock. If offers one of its shares for every 4 of T's shares, what is the NPV of the merger? $14,417.91 S10,917.91

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