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Time Remaining Return Next 4 points Firm A(cquirer) has 40,000 shares outstanding with a market price of $18 per share. Firm T(arget) has 12,000 shares

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Time Remaining Return Next 4 points Firm A(cquirer) has 40,000 shares outstanding with a market price of $18 per share. Firm T(arget) has 12,000 shares outstanding with a market price of $31 per share. Both firms are 100% equity finance firms. T is willing to be taken over by $408,000. The synergy of this takeover is $80,000. (a) What is the total NPV (not on per share base) of this takeover project if firm A pays cash? Blank 1, fill in the most relevant formula: type your answer. Blank 2, Plug in numbers in the formula: type your answer... Blank 3, final answer: type your answer. (b)What is the actual total payment (not on per share base) A pays to the shareholders of T if firm A pays T with its stocks? Blank 1, fill in the most relevant formula: type your answer... Black 2, Plug in numbers in the formula: type your answer. Bank 3, final answer: type your answer. Previous Next

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