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Question 1 : XYZ is planning to acquire ABC firm. The resulting synergy is expected to be 2 5 0 . In a friendly negotiation,

Question 1: XYZ is planning to acquire ABC firm. The resulting synergy is expected to be 250. In a friendly negotiation, ABC shareholders
asked for $50 premium. The value of both firms before merger is as follows:
What is the shareholders wealth of ABC firm in case of stock acquisition
Select one:
a.850
b.829.3
c. none of the answers
d.850.3
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