Question
NEED HELP ASAP Firm A acquired Firm T by paying $5000 in cash for all of the latters shares. The offer of $5000 was a
NEED HELP ASAP
Firm A acquired Firm T by paying $5000 in cash for all of the latters shares. The offer of $5000 was a 25% premium over Firm Ts market cap the day before the acquisition was announced. Assume that Firm T was correctly valued the day before the acquisition announcement. What is the minimum incremental value the acquisition must create (in present value terms) so that it is not a value-destroying decision for the Firm A?
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Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
