Question
Firm A is bidding to take over firm B. Firm A has 1300 shares outstanding, selling at $ 11,00 per share. Firm B has 450
Firm A is bidding to take over firm B. Firm A has 1300 shares outstanding, selling at $ 11,00 per share. Firm B has 450 shares outstanding, selling at $ 15,00 a share. You estimate that the economic gain from the merger is $ 1700. If firm B shares can be acquired for $ 16,30 a share, what is the NPV per share of the merger to A?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
