Question
Firm A is acquiring Firm B. Firm As share price is $12 and Firm B's share price is $4. Both firms have 1 million shares
Firm A is acquiring Firm B. Firm As share price is $12 and Firm B's share price is $4. Both firms have 1 million shares outstanding. Firm A expects a discounted synergistic value of $2 million from the merger. If Firm A pays $5 million cash to Firm B's shareholders, what is the NPV of the acquisition?
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
