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Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 3,770 shares outstanding at a market price of $45.38 per share.
Firm A is analyzing the possible acquisition of Firm T. Firm A currently has 3,770 shares outstanding at a market price of $45.38 per share. Firm T has 2,615 shares outstanding at a market price of $35.24 per share. If Firm A has estimated that the present value of the synergistic benefits arising from the acquisition of Firm Tis $5,695, what would be the NPV of the merger if Firm A offered 3 of its shares in exchange for 4.0 of Firm T's shares? $5,383 $5,528 $5,673 $5,819 $5,964
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