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Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 6,430 shares outstanding at a market price of $63.62 per share.
Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 6,430 shares outstanding at a market price of $63.62 per share. Firm T has 4,477 shares outstanding at a market price of $52.72 per share. If Firm A has estimated that the present value of the synergistic benefits arising from the acquisition of Firm Tis $9,685, what would be the NPV of the merger if Firm A offered 3 of its shares in exchange for 13.5 of Firm T's shares
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