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The bidding firm (Firm B) has 2,300 premerger shares outstanding at $43 per share. The target firm (Firm T) has 1,100 premerger shares outstanding at
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The bidding firm (Firm B) has 2,300 premerger shares outstanding at $43 per share. The target firm (Firm T) has 1,100 premerger shares outstanding at $24 per share. Assume neither firm has any debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,600. What is the NPV of the merger assuming that Firm T is willing to be acquired for $26 per share in cash?
$2,200
$400
$100
$2,600
$800
The bidding firm (Firm B) has 2,300 premerger shares outstanding at $43 per share. The target firm (Firm T) has 1,100 premerger shares outstanding at $24 per share. Assume neither firm has any debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,600. What is the NPV of the merger assuming that Firm T is willing to be acquired for $26 per share in cash?
| $2,200 | ||
| $400 | ||
| $100 | ||
| $2,600 | ||
| $800 |
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