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Mizumo, Inc. has a market value of $10,200 while Chelsea Company has a market value of $7,500. Chelsea is merging with Mizumo and expects the

Mizumo, Inc. has a market value of $10,200 while Chelsea Company has a market value of $7,500. Chelsea is merging with Mizumo and expects the combined firm to have a market value of $18,700. If the current Mizumo shareholders obtain $10,750 of equity in the new firm, how much synergy was allocated to the Chelsea shareholders?

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