Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $44 per share, and LE is trading for $57 per share,
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $44 per share, and LE is trading for $57 per share, implying a premerger value of LE of approximately $9.8 billion. If the projected synergies are $2.34 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV? [2 points] Exchange ratio is (round to three decimals): ________
Calculations:
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
