Question $6$ Bidder MVBS$,$ N$=10$ Target MVBS$,$ N $=10$ PV synergies $=$ $$200.$ Bidder offers $$30$ worth of Newco share for each target share, provided that the exchange ratio does not exceed $1$ and does not fall below $0\mathrm{.}5.$ Target has $$300$ hidden liabilities that the market learns about after the announcement. What is newco's stock price after the merger is executed? Solution: $$28$ tell me why the answer is $28$