Question
Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of
Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 6,500 shares of stock outstanding at a market price of $43 a share. Firm B has 2,500 shares outstanding at a price of $26 a share. The merger has a zero net present value. What is the value of the merged firm?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
