Question
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $44 per share, and LE is trading for $50 per share,
The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $44 per share, and LE is trading for $50 per share, implying a pre-merger value of LE of approximately $5.3 billion. If the projected synergies are $1.29 billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
