Question
Shown below is certain data for the Buyer and Target firms. Buyer Target Standalone value $1,200 $ 300 Shares Outstanding 10 50 Buyer estimates the
Shown below is certain data for the Buyer and Target firms.
Buyer Target Standalone value $1,200 $ 300 Shares Outstanding 10 50
Buyer estimates the present value of synergies as $100. Buyer makes an all cash offer $450 for the stock of Target.
Calculate:
The gain for buyer (deal NPV)
The gain for the target (deal NPV)
Buyer's post-acquisition stock price per share
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Authors: Mark Graham
1st Edition
0648678830, 978-0648678830
