What is the minimum annual synergy

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Tarocco Inc. has offered $27mm for all of the common stock of Palmer's Corp. The current market capitalization of Palmer's Corp. as an independent company is $18mm. Assume the required return on the acquisitions is 11% and the synergy from the acquisition is a perpetuity. What is the minimum annual synergy that Tarocco feels it will gain from the acquisition?

Reference no: EM132412338

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