1. You want to work up a bid for a manufacturing company of interest.

   Based on a DCF analysis, you determine that the net present value of the current operations,

   before any efficiencies, is $700 million.

   You believe that by purchasing this company, you could bring about additional synergies

   that will be worth an addtional value of $65 million.

   You have also determined the Enterprise Value, the value of the business, to be $685 million.

   If you demand to retain 100% of created synergy value,

   what is the highest amount you would be willing to spend for this firm?

   In other words, wha tis the Bid-Price?

   	a.	$700 million
   	b.	$765 million
   	c.	$65 million
   	d.	$685 million