Apricot Technologies has offered to acquire Benson Co. for 15% of the merged firm to Benson shareholders. The market value of Apricot is $20mm and Benson has a market value of $3 million. It is anticipated that with the acquisition, the combined annual after-tax cash flows would increase by $50,000. What is the cost of the stock offer?

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Ans The cost of the stock offer can be determined based ... View the full answer