There are two firms, Firm #1 and Firm #2: (you don't need to use one of the numbers given- either the 520 or 890)

• Firm #1 has a current market value of $520 million.
• Firm #2 had a current market value of $320 million.

Firm #1 is planning to acquire Firm #2 for $345 million because it believes that the newly created firm will be worth $890 million.

The expected synergy from the merger of Firm #1 with Firm #2 equals either: $30 million, $40 million. $50 million $60 million $70 million $80 million.