Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500.
What is the price per share of the post-merger firm following a cash acquisition?
A) $25.38
B) $25.50
C) $25.62
D) $25.76
E) $27.30
Correct Answer:
Verified
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