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the market price of company A is $200 million and that of B is $100 million. the number of shares of company A is 1
the market price of company A is $200 million and that of B is $100 million. the number of shares of company A is 1 million and that of B is 500,000. Merging two firms will allow for cost savings with a present value of $25million. Firm A has decided to pay $ 65million to acquire B. A. What is the market value of A B. what is the market value of B C. what is the gains from synergies D. Compute the cost of merger to firm A E. What is the benefit of merger to firm A F. what is the NPV of the merger
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