Telecom BC Inc. telecommunication company is looking to acquire Beat Plus Inc. heart rate check app.
 After-tax cash flows of Telecom BC are $49mln while for Beat Plus - $6mln. Both firms are all-equity firms. 
The rate of return for both firms is 14%. 
After the acquisition, the cash flows of Telecom BC Inc will become. $57mln. Does this merger create synergy? If yes, what is this synergy in $?

Answer rating: 100% (QA)

Step 12 Synergy is the excess cash flow generated from the combined company that the sum ... View the full answer