Three Guys Burgers, Inc., has offered $25.5 million for all of the common stock in Two Guys
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Question:
Three Guys Burgers, Inc., has offered $25.5 million for all of the common stock in Two Guys Fries, Corp. The current market capitalization of Two Guys as an independent company is $20.7 million. Assume the required return is 9.4 percent and the synergy from the acquisition is a perpetuity. |
What is the minimum annual synergy that Three Guys feels it will gain from the acquisition? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) |
Annual synergy | $ |
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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