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Consider the following pre-merger 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 pre-merger 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 Firma Firm T 5,800 1,700 $ 55 $ 25 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $8,100. a. If Firm T is willing to be acquired for $27 per share in cash, what is the NPV of the merger? (Omit $ sign in your response. Negative answers should be indicated by a minus sign.) NPV b. What will the price per share of the merged firm be, assuming the conditions in (a)? (Round the final answer to 2 decimal places. Omit $ sign in your response.) Price per share c. If Firm T is willing to be acquired for $27 per share in cash, what is the merger premium? (Omit $ sign in your response.) Merger premium d. Suppose Firm Tis agreeable to a merger by an exchange of stock. If 8 offers one of its shares for every two of T's shares, what will the price per share of the merged firm be? (Round the final answer to 2 decimal places. Omit S sign in your response.) Price per share e. What is the NPV of the merger assuming the conditions in (d)? (Round the final answer to 2 decimal places, Omit $ sign in your response. Negative answers should be indicated by a minus sign.) $ NPV

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