Firm a estimates that the value of the synergistic benefit

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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?

Reference no: EM13483917

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