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Question 7 1 pts Big, Inc. is considering acquiring Little Co. The CEO of Big believes that he can use his sales network to increase
Question 7 1 pts Big, Inc. is considering acquiring Little Co. The CEO of Big believes that he can use his sales network to increase Little, Inc's revenues by $4 million per year, while increasing its costs by $1 million. Due to the merger, LittleCo will lose small business tax credits worth $750,000 per year over the next 5 years. LittleCo's cost of equity is 21% If LittleCo's share price is currently $70, they have 742 thousand shares outstanding, and Big is offering to pay $78 million for Little, what is the NPV of the merger to Big
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