Question
Firm A is acquiring Firm B. Firm As share price is $6 and Firm B's share price is $3.50. Firm A has 3 million shares
Firm A is acquiring Firm B. Firm As share price is $6 and Firm B's share price is $3.50. Firm A has 3 million shares outstanding and Firm B has 1.8 million shares outstanding. Firm A expects a discounted synergistic value of $2.5 million from the merger. If Firm A pays $7.5 million cash to Firm B's shareholders, what is the value of the merged firm?
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
