Question
) Two airlines AceAir and TargAir intend to merge and AceAir has calculated the NPV of the merger to be $400 million after paying $800
) Two airlines AceAir and TargAir intend to merge and AceAir has calculated the NPV of the merger to be $400 million after paying $800 million for TargAir. If AceAir had a pre-merger value of $1 billion and TargAir had a pre-merger value of $600 million, calculate the value of the merged entity, as well as the cost of the merger
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
