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You are evaluating the acquisition of a firm in your industry. You plan a 1-for-2 exchange of your shares for shares in the target. Assume
You are evaluating the acquisition of a firm in your industry. You plan a 1-for-2 exchange of your shares for shares in the target. Assume the following data is available. Compute the value of the combined firm and the new price per share. Then determine the NPV of the stock offer. Acquiring Target VA $77 VT $12 NA 7 NT 2 PA $11 PT $6 S $24 NSE 1 Value of combined firm $ New price per share $ NPV of stock offer $
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