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the market price of company A is $200 million and that of B is $100 million....

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Finance

the market price of company A is $200 million and that of B is$100 million. the number of shares of company A is 1 million andthat of B is 500,000. Merging two firms will allow for cost savingswith a present value of $25million. Firm A has decided to pay $65million to acquire B. A. What is the market value of A B. what isthe market value of B C. what is the gains from synergies D.Compute the cost of merger to firm A E. What is the benefit ofmerger to firm A F. what is the NPV of the merger

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4.2 Ratings (806 Votes)
Total Market value of company A 200 million Total Market value of company B 100 million Total No of shares of company A 1 million Total No of shares of company B 05 million A    See Answer
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the market price of company A is $200 million and that of B is$100 million. the number of shares of company A is 1 million andthat of B is 500,000. Merging two firms will allow for cost savingswith a present value of $25million. Firm A has decided to pay $65million to acquire B. A. What is the market value of A B. what isthe market value of B C. what is the gains from synergies D.Compute the cost of merger to firm A E. What is the benefit ofmerger to firm A F. what is the NPV of the merger

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