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Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 4,190 shares outstanding at a market price of $48.26 per share.
Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 4,190 shares outstanding at a market price of $48.26 per share. Firm T has 2,909 shares outstanding at a market price of $38.00 per share. If Firm A has estimated that the present value of the synergistic benefits arising from the acquisition of Firm T is $6,325, what would be the NPV of the merger if Firm A offered 3 of its shares in exchange for 5.5 of Firm T's shares?
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