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Assume that an acquirer has premerger market capitalization of $750 million and stock beta of...

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Finance

Assume that an acquirer has premerger market capitalization of $750 million and stock beta of 1.40. On the day that the acquirer announces the bid, its stock return is 1.45%. On the same day, the market return is 0.50%. How much value, in million dollars, does the acquisition create for the acquiring firm's shareholders? (Hint: calculate the abnormal stock returns then determine the value to be created in dollars)

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