Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 28, Problem 13P
Summary Introduction

To derive the maximum exchange ratio company NF could offer LE shareholders and still generate a positive Net Present Value, given that NF currently trades at $35 per share and LE trades at $25 per share, if the projected synergies after the merger is estimated at $1 billion. The pre-merger market capitalization of LE is $4 billion.

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