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Silver Structures Corp. (SSC) would like to acquire Chrome Cranes Inc. (CCI). SSC has 450,000 shares outstanding at a stock price of $51 per share,
Silver Structures Corp. (SSC) would like to acquire Chrome Cranes Inc. (CCI). SSC has 450,000 shares outstanding at a stock price of $51 per share, while CCI has 400,000 shares outstanding and a stock price of $27. The annual synergy value from the merger is estimated at $390,000 and this value is expected to remain constant in perpetuity. The combined firm would have a cost of capital of 10%. If SSC offers CCI's shareholders $43 per share in cash, what would be the total NPV of the deal for SSC?
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