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Firm A has 1 million shares outstanding, and it is currently trading at $60 per share. Firm B has 800,000 shares outstanding, and it is

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Firm A has 1 million shares outstanding, and it is currently trading at $60 per share. Firm B has 800,000 shares outstanding, and it is currently trading at $21 per share. Firm A can acquire Firm B for $17,000,000 in the form of either cash or stock. Assume that the synergy value of the deal is $1,500,000. The NPV of the deal for Firm A if it acquires Firm B using stock would be closest to A) $1,010,000 B) $1,300,000 OC) None of the options. D) $1,500,000 E) $610,000

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