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Q 3 : Company K revenues = $ 7 5 MM and costs = $ 5 9 MM , and Company L revenues = $

Q3: Company K revenues = $75 MM and costs = $59 MM, and Company L revenues = $10 MM and costs= $8 MM; combined/merged revenues = $86 MM and costs = $66MM (assume a cost of capital =10%). Company K and Company L stock prices are $96 and $32 respectively- company K is willing to pay $38 foreach share of L for which there are 1.25 MM O/S- what is company K's NPV on the deal (company K sharesO/S =5 MM)?

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