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Masco and Carlisle are all-equity firms. Masco has 60,000 shares outstanding at a market price of $79.50 a share while Carlisle has 17,500 shares
Masco and Carlisle are all-equity firms. Masco has 60,000 shares outstanding at a market price of $79.50 a share while Carlisle has 17,500 shares outstanding at a price of $56 a share. Masco is acquiring Carlisle for $1,120,000 in cash. The incremental value of the acquisition is $295,000. What is the net present value of acquiring Carlisle to Masco?
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Financial Management For Decision Makers
Authors: Peter Atrill, Paul Hurley
2nd Canadian Edition
138011605, 978-0138011604
