Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $60 per share, and LE is trading for $78 per share,
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $60 per share, and LE is trading for $78 per share, implying a premerger value of LE of approximately $6.6 billion. If the projected synergies are $1.56 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?
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Stocks Bonds And Taxes A Comprehensive Handbook And Investment Guide For Everybody
Authors: Phillip B. Chute
1st Edition
1732885532, 978-1732885530
