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Firm A is considering a mergetlacquisition with Firm B. According to the Weston/Copeland model, what is the total synergy gain from the merger FirmA Market
Firm A is considering a mergetlacquisition with Firm B. According to the Weston/Copeland model, what is the total synergy gain from the merger FirmA Market value of debt $7 Market value of equity $5 Number of shares: 02 Firm B Market value of debt. $4 Market value of equity. 56 Number of shares: 0.5 Investment rate for the combined firm (DAB) 60 WACC for the combined firm (WACCA-B): 10 Total net operating income before synergy gain: (x) $3 Synergy rate (a).05 Corporate tax rate (T). 40 Growth rate for the combined firm (g): 144 Number of years for the growth: 10 Select one: O a 19.44 Ob 21.32 OC 15.87 O d. 17.09 Firm A is considering a mergetlacquisition with Firm B. According to the Weston/Copeland model, what is the total synergy gain from the merger FirmA Market value of debt $7 Market value of equity $5 Number of shares: 02 Firm B Market value of debt. $4 Market value of equity. 56 Number of shares: 0.5 Investment rate for the combined firm (DAB) 60 WACC for the combined firm (WACCA-B): 10 Total net operating income before synergy gain: (x) $3 Synergy rate (a).05 Corporate tax rate (T). 40 Growth rate for the combined firm (g): 144 Number of years for the growth: 10 Select one: O a 19.44 Ob 21.32 OC 15.87 O d. 17.09
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