Firm B has current value of $500 and seeks to acquire Firm T with a...
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Accounting
- Firm B has current value of $500 and seeks to acquire Firm T with a current market value of $100. The financial manager of Firm B believes that the two firms combined would be valued at $650.
- Calculate the gain to the merger [3 marks)
- Calculate the NPV of the merger if Firm B offers $110 for Firm T [3 marks)
- Discuss the distribution of gains if Firm T will only accept an offer of $150 [3 marks)
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