Barlow Manufacturing has announced plans to acquire Hull Enterprises.Barlow is trading for $19.25 per share and has a premerger value of $3 billion,while Hull is trading for $41.35 per share and has a premerger value of $950 million dollars.If the projected synergies from the merger are $425 million,what is the maximum cash offer per share that Barlow could make and still generate a positive NPV?
A)$98.37
B)$60.60
C)$41.35
D)$47.20
E)$59.85

Question

Quizplus · Accepted Answer

The Answer of Barlow Manufacturing has announced plans to acquire Hull Enterprises.Barlow is trading for $19.25 per share and has a premerger value of $3 billion,while Hull is trading for $41.35 per share and has a premerger value of $950 million dollars.If the projected synergies from the merger are $425 million,what is the maximum cash offer per share that Barlow could make and still generate a positive NPV?
A)$98.37
B)$60.60
C)$41.35
D)$47.20
E)$59.85

Barlow Manufacturing Has Announced Plans to Acquire Hull Enterprises