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Problem 9 . Consider the following premerger information about a bidding firm ( Firm Bidder ) and a target firm ( Firm Target ) .

Problem 9. Consider the following premerger information about a bidding firm (Firm
Bidder) and a target firm (Firm Target). Assume that both firms have no debt
outstanding. Suppose that synergies are $30,000. Suppose that Firm B offers to pay Firm
T's shareholders $44 in cash for each of their shares.
What is the NPV of the acquisition for Firm B?
a)-$12,000
b) zero
c) $24,000
d) $18,000
e) $6,000
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