What is the implied synergy

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Question

Bidder and Target each have 100 shares outstanding. Bidder's stock price is $30 and Target's stock price is $25, prior to the announcement of Bidder's offer for Target, whereby Bidder offers $30 worth of Newco stock for each share of Target. The market price of Target right after the announcement is $27, and the market price of Bidder is $27. What is the implied synergy?

Reference no: EM133272610

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