Question: Big Corp is planning to fully acquire Small Corp. Big Corp currently has 10 million shares outstanding with a share price of $50 and total

 Big Corp is planning to fully acquire Small Corp. Big Corp

Big Corp is planning to fully acquire Small Corp. Big Corp currently has 10 million shares outstanding with a share price of $50 and total outstanding debt of $100 million (no excess cash). Small Corp currently has 5 million shares outstanding with a share price of $30 and total outstanding debt of S50 million (no excess cash). Big Corp plans an all cash offer and will offer 538 per share of Small Corp. The transaction will be financed with a new bank loan and Big Corp will assume all outstanding debt of Small Corp. Synergies from the transaction are expected to be 580 million. Calculate the new share price of Big Corp after the acquisition (PBig + Smal). Round your result to two decimals (do not include the S-symbol in your answer)

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