Manu Life is considering aquiring Sun Life Additional information about the two companies (stand alone) is displayed in the table below Analysts estimate merger synergies with a present value of $5 4 billion Both companies are all equity financed Manu Life Sun Life Value of Firm ($billion) $90 39 $32 98 Shares Outstanding (billion) 1 65 0 80 Stock Price $54 78 $41 22 Suppose that Manu Life proposes a mixed offer to aquire Sun Life Sun Life shareholders receive 0 589 shares in Manu Life and $34 50 cash for each Sun Life share tendered What will Manu Life's stock price be after the acquisition What is the Net Present Value of the offer to Manu Life in $ billions

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Question: Manu Life is considering aquiring Sun Life. Additional information about the two companies (stand-alone) is displayed in the table below. Analysts estimate merger synergies with

Manu Life is considering aquiring Sun Life. Additional information about the two companies (stand-alone) is displayed in the table below. Analysts estimate merger synergies with a present value of $5.4 billion. Both companies are all equity financed.

	Manu Life	Sun Life
Value of Firm ($billion)	$90.39	$32.98
Shares Outstanding (billion)	1.65	0.80
Stock Price	$54.78	$41.22

Suppose that Manu Life proposes a mixed offer to aquire Sun Life. Sun Life shareholders receive 0.589 shares in Manu Life and $34.50 cash for each Sun Life share tendered.

What will Manu Life's stock price be after the acquisition?

What is the Net Present Value of the offer to Manu Life in $ billions?

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