Question
KT corporation has announced plans to acquire MJ corporation. KT is trading for $45 per share and MJ is trading for $25 per share, with
KT corporation has announced plans to acquire MJ corporation.
KT is trading for $45 per share and MJ is trading for $25 per share,
with a premerger value for MJ of $3 billion dollars. If the projected
synergies from the merger are $750 million, what is the maximum
exchange ratio that KT could offer in a stock swap and still
generate a positive NPV?
calculation steps??
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
