Question: Please use the following information to answer the next TWO questions. Firm X is godng to akquire Firm Y. The acquisition will be done via
Please use the following information to answer the next TWO questions. Firm X is godng to akquire Firm Y. The acquisition will be done via a share exchange, whereby Firm X will exchange two of its shares for every one of Fim Y"s shares, Synergy is $1,500,000 in total. 43. What is the takeover premium in dollars? (Tip: round the share price of the combined firm to two decimal places in calculating your attswer.) A) $5,700,000 B) SI,500,000 C) 52,751,000 D) 52,500,000 E) $3,000,000 44. For the NPV of the transaction to be zero for Firm X, how many shares would Firm X have to give to Firm Y'? A) 242,170 B) 274,576 C) 240,000 D) 270,000 E) There is not enough information
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