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Firm A is considering a merger with Firm B. Based on the following data, what is the synergy gair from the merger? Firm A Market
Firm A is considering a merger with Firm B. Based on the following data, what is the synergy gair from the merger? Firm A Market value of debt: $2 million Market value of equity: S4 million Number of shares: 0.2 million Estimated total firm value based on value-based management model if the merger takes place 8 million Firm B Market value of debt: $5 million Market value of equity: $6 million Number of shares: 0.5 million Estimated total firm value based on value-based management model if the merger takes place 14 million
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