Npv of the merger may differ from expectations

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The shareholders of firm A have offered one million shares valued at $10 each to acquire firm B. After the merger is announced, stock A trades for $9 per share. Which of the following statements is not correct?

-The NPV of the merger may differ from expectations
-Firm A appears to have overbid for firm B
-Shareholders of A absorb all additional "cost"
-A's stockholders are better off than if the merger were cash financed for $10 million

Reference no: EM132952974

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