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Using Activision's stock price before the acquisition announcement, compute the ratio of the company's market value to the book value of shareholders' equity (i.e., the
Using Activision's stock price before the acquisition announcement, compute the ratio of the company's market value to the book value of shareholders' equity (i.e., the "market-to-book" ratio). Provide an explanation for why the company's market value of equity differs from its book value of equity.By how much does your valuation estimate change when you take into consideration the synergies that Microsoft could obtain from acquiring Activision? Calculate and explain.
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