Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $25 pershare, and LE is trading for $78 pershare, implying a
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $25 pershare, and LE is trading for $78 pershare, implying a premerger value of LE of approximately $9.7 billion. If the projected synergies are $1.63 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positiveNPV?
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Corporate Finance The Core
Authors: Jonathan Berk, Peter DeMarzo
4th Global Edition
1292158336, 9781292158334
