Question
Firms A and B intend to merge and Firm A has calculated the NPV of the merger to be $2 million after paying $8 million
Firms A and B intend to merge and Firm A has calculated the NPV of the merger to be $2 million after paying $8 million for Firm B. If Firm A had a pre-merger value of and Firm B had a pre-merger value of $6 million, calculate the value of the merged entity, as well as the cost of the merger.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
