$xYZ$ is planning to acquire ABC firm. The resulting synergy is expected to be $250.$ In a friendly negotiation, ABC shareholders asked for $$50$ premium. The value of both firms before merger is as follows:

$\backslash$table$[[,$XYZ$,$ABS$],[$MV$,100,800,00500],[$# of shares,$100,50],[$Price$,8,10]]$

What is the NPV of the acquisition if it is stock acquisition

Select one:

a$.$ none of the answers

b$.22$

c$.20,7$

d$.35\mathrm{.}3$

e$.50$

Your answer is incorrect.

The correct answer is: $207$

$xYZ$ is planning to acquire ABC firm. The resulting synergy is expected to be $250.$ In a friendly negotiation, ABC shareholders asked for $$50$ premium. The value of both firms before merger is as follows:

$\backslash$table$[[,$XYZ$,$ABS$],[$MV$,1000800,500],[$# of shares,$100,50],[$Price$,8,10]]$

What is the new share price of the firm if the acquisition is stock acquisition

Select one:

a$.$ none of the answers

b$.9$

c$.5$

d$.10\mathrm{.}25$

e$.9\mathrm{.}5$

Your answer is correct.

The correct answer is: $10\mathrm{.}25$

Question $1$: XYZ is planning to acquire ABC firm. The resulting synergy is expected to be $250.$ In a friendly negotiation, ABC shareholders asked for $$50$ premium. The value of both firms before merger is as follows:

$\backslash$table$[[,$XYZ$,$ABS,$],[$MV$,100,800,600,500],[$# of shares,$100,50,],[$Price$,8,10,]]$

What is the shareholders wealth of ABC firm in case of stock acquisition

Select one:

a$.850$

b$.829\mathrm{.}3$

c$.$ none of the answers

d$.850\mathrm{.}3$