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Stock Offer Example At the time ABC announced plans to acquire XYZ, ABC stock was trading for $12 per share and XYZ stock was trading
Stock Offer Example At the time ABC announced plans to acquire XYZ, ABC stock was trading for $12 per share and XYZ stock was trading for $8 per share. The projected synergies of the merger were $80M and XYZ had 30M shares outstanding. What is the maximum cash offer ABC could make and still generate positive NPV? What is the maximum exchange ratio ABC could offer in a stock swap
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