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Consider the Following Premerger Information About a Bidding Firm (Firm

Question 67

Multiple Choice

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T) . Assume that neither firm has any debt outstanding. Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T) . Assume that neither firm has any debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,600. What is the NPV of the merger assuming that Firm T is willing to be acquired for $28 per share in cash? A) $400 B) $600 C) $1,800 D) $2,200 E) $2,600 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,600. What is the NPV of the merger assuming that Firm T is willing to be acquired for $28 per share in cash?


A) $400
B) $600
C) $1,800
D) $2,200
E) $2,600

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