Presence of marketing synergies will produce

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Nora Fashion Corp. is thinking to acquire Sally Shoes Corp. The presence of marketing synergies will produce an estimated additional value of $9,259,259. Nora Fashion has 2,500,000 shares of equity outstanding with a market price of $6 each, while a share of stock of Sally Shoes has a price of $8 and an overall equity value of $9,000,000. The acquisition will be paid with new shares issued by Nora Fashion and distributed to Sally Shoes shareholders. The gain from the synergies will be shared equally between the shareholders of two companies. How many shares of Nora Fashion will be distributed for one share of Sally Shoes? Show your working

Reference no: EM13932629

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