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Should firm proceed to estimate value of synergistic benefit

Consider the following information for two all-equity firms, A and B:

	Firm A	Firm B
Shares outstanding	2,000	6,000
Price per share	$ 40	$ 30

Firm A estimates that the value of the synergistic benefit from acquiring Firm B is $6,000. Firm B has indicated that it would accept a cash purchase offer of $35 per share. Should Firm A proceed?

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Finance Basics: Should firm proceed to estimate value of synergistic benefit

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Should firm proceed to estimate value of synergistic benefit

Reference No:- TGS0557063

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Should firm proceed to estimate value of synergistic benefit

Reference No:- TGS0557063

Recent Questions Asked Finance Basics

Q : Risk report for the union pacific corporation

Q : The accounts receivable subsidiary ledger

Q : Value of a summit system

Q : Determine the absorption costing and variable costing

Q : Should firm proceed to estimate value of synergistic benefit

Q : Car wash partners questions

Q : Determine the account balances for hulse company

Q : Find cost of the merger if merged firm is worth given amount

Q : Final step of screening process

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