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 value of the merged firm?
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
