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Firm A announces plans to acquire Firm B in a stock based acquisition. At the time of the announcement Firm A's stock was trading at

Firm A announces plans to acquire Firm B in a stock based acquisition. At the time of the announcement Firm A's stock was trading at $6.75 a share while Firm B's stock was trading at $4.56 per share. Firm A has a market value at the time of the announcement of $15.78 billion while Firm B has a market value of $3.46 billion. Expected synergies from the deal are $0.83 billion What is the maximum exchange ratio Firm A can offer to Firm B and still be NPV neutral on the acquisition?

Group of answer choices

A. .7110:1

B. .6756:1

C. 1.8354:1

D. .8376:1

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