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You calculate that a large company has an enterprise value of $600 million and total liabilities, including debt, of $100 million. The company purchases a

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You calculate that a large company has an enterprise value of $600 million and total liabilities, including debt, of $100 million. The company purchases a competitor for $250 million. The company borrows the money to buy the company so debt increases by $250 million. There are 10 million shares outstanding, What is the fair share price of the company, after the acquisition? $50 $95 $75 $28 3 pts Question 17 You just discovered a $25 million liability for releasing toxic waste into the water system. Which of the following are true: The equity value would fall, all else equal. The equity value would rise because the costs would be non-operating items The value would not change until the fine was paid

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