Question: Show all work: 1 . Before a potential merger, First Line Books had 2 2 5 , 0 0 0 shares outstanding at a market
Show all work:
Before a potential merger, First Line Books had shares outstanding at a market price of $ per share. Specialty Thrillers has shares outstanding at $ per share. Assume First Line Books has estimated the value of the synergistic benefits from acquiring Specialty Thrillers to be $ Neither firm has outstanding debt. First Line Books has offered $ per share to the target.
a What is the value of the target firm to the acquirer current market value synergyshow answer to the nearest dollar
b What is the NPV of the proposed acquisition? to the nearest dollar
c If the deal goes through, what is the price per share of the merged firm? show as $xxxx per share
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