Question
Firm A and Firm B are all-equity firms. Max Power has 240,000 shares outstanding at a market price of $36 a share. Firm B has
Firm A and Firm B are all-equity firms. Max Power has 240,000 shares outstanding at a market price of $36 a share. Firm B has 560,000 shares outstanding at a price of $62 a share. Firm B is acquiring Firm A for $9,340,000 in cash. The synergy value of the acquisition is $1,180,000. What is the net present value of acquiring Firm A to Firm B?
|
| $514,000 | |
|
| $502,000 | |
|
| $490,000 | |
|
| $480,000 | |
|
| $470,000 |
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The Structured Credit Handbook
Authors: Arvind Rajan, Glen McDermott, Ratul Roy
1st Edition
0471747491, 978-0471747499
