Abc believes it can create 58473 of synergy if it acquires


XYZ has a market value of $289449. ABC has a market value of $617676. ABC believes it can create $58473 of synergy if it acquires XYZ for $293011 in cash. Assume both firms are all-equity financed.

What is the value of ABC following the merger? (Round answer to 0 decimal places)

Wilson's has 4919 shares of stock outstanding at a market price per share of $17. Albertson's has 19785 shares outstanding that sell for $22 a share. By merging, $14814 of synergy can be created. Albertson's is acquiring Wilson's for $84,000 worth of Albertson stock.

What is the post-merger value per share? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

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Finance Basics: Abc believes it can create 58473 of synergy if it acquires
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