Assume that an acquirer has premerger market capitalization of $325 million and stock beta of 1.40. On
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Assume that an acquirer has premerger market capitalization of $325 million and stock beta of 1.40.
On the day that the acquirer announces the bid, its stock return is 1.45%.
On the same day, the market return is 0.50%.
How much value, in million dollars, does the acquisition create for the acquiring firm's shareholders?
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