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What is the maximum exchange ratio abc

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Company ABC announced plans to acquire company XYZ. Before the announcement, ABC and XYZ were traded at HK$20 per share and HK$30 per share respectively. The pre-merger equity value of the XYZ was HK$30 million. If the projected synergies were HK$10 million, What is the maximum exchange ratio ABC could offer in a stock swap and still generate a positive NPV?

Reference no: EM133111737

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