The NFF Corporation has announced plans to acquire LE Corporation. NFF is trading for $48 per share, and LE is trading for $74 per share, implying a premerger value of LE of approximately $8.6 billion. If the projected synergies are $1.44billion, what is the maximum exchange ratio NFF could offer in a stock swap and still generate a positive NPV?

Answer rating: 100% (QA)

Explanation The maximum exchange ratio Premerger value Synergies Preme... View the full answer