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Please show work for Q2 and Q3. The answers are 0.63 and 0.72, respectively Firm A has a market value of $600MM and 30MM shares

Please show work for Q2 and Q3. The answers are 0.63 and 0.72, respectively
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Firm A has a market value of $600MM and 30MM shares outstanding. Firm B has a market value of $200MM and 20MM shares outstanding. A is contemplating acquiring B. Firm A's CFO concludes that the combined firm with synergy will be worth about $1.05 billion and Firm B can be acquired at a premium of $150MM. Q.1) If Firm A offers 15MM shares to exchange for the 20MM shares of B, then the post acquisition price for Firm AB would be: a.) $23.3/ share b.) $20.3/ share c.) S 18.5/share d.) 525.3/ share e.) $24.0 /share Q.2) The ER that Firm A has to offer to Firm B so that Firm B would receive the equivalent to a cash offer of S 310MM is: a.) 0.63 b.) 0.66 c.) 0.58 d.) 0.55 e.) 0.60 Q.3) If Firm B insists that it should receive 50% of the synergy, then the ER Co B must receive is: a.) 0.66 b.) 0.68 c.) 0.70 d.) 0.72 e.) 0.75

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