Incremental firm value when acquiring target firm

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Reference no: EM132050263

1. You own 10,000 shares of Mars Co. which is currently trading for $11.50 per share. The company has announces that it will soon pay a special dividend of $1.50 per share. Tomorrow is the ex-dividend day. Ignoring taxes, what do you expect your block of shares will be worth tomorrow?

2. How do undervaluation, synergy, and mismanagement contribute to incremental firm value when acquiring a target firm?

Reference no: EM132050263

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