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Firm A is acquiring Firm B. Firm As share price is $20 and Firm B's share price is $14. Firm A has 2 million and
Firm A is acquiring Firm B. Firm As share price is $20 and Firm B's share price is $14. Firm A has 2 million and Firm B has 3 million shares outstanding. Firm A expects a discounted synergistic value of $4.5 million from the merger. If Firm A pays $45 million cash to Firm B's shareholders, what is the NPV of the acquisition?
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