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hello can someone please help me with this managerial finance question step by step thank you Big Fish Inc. is acquiring Little Fish Ltd. Big
hello can someone please help me with this managerial finance question step by step thank you
Big Fish Inc. is acquiring Little Fish Ltd. Big Fish's share price is $10 and Little Fish's share price is $2. Both firms have 1 million shares outstanding. Big Fish expects a discounted synergistic value of $1 million from the merging of operations of the two firms. If Big Fish pays cash of $2.2 million to Little Fish's shareholders, what is the NPV of the acquisition? Multiple Choice $1,600,000 $800,000 $1,200,000 $1,400,000 $1,000,000Step by Step Solution
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