Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $36 pershare, and LE is trading for $58 pershare, implying apre-merger
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $36 pershare, and LE is trading for $58 pershare, implying apre-merger value of LE of approximately $8.2 billion. If the projected synergies are $2.85 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?
The maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV is ?
. (Round to three decimalplaces.)
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
