Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $41 pershare, and LE is trading for $42 pershare, implying a
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $41 pershare, and LE is trading for $42 pershare, implying a premerger value of LE of approximately $7.2 billion. If the projected synergies are $0.86 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positiveNPV?
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Fundamentals Of Financial Management
Authors: Richard Bulliet, Eugene F Brigham, Brigham/ Houston
11th Edition
1111795207, 9781111795207
