Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 26, Problem 11QP
Summary Introduction

To express: The NPV (Net present value) of a merger as the synergistic benefits value minus the merger premium.

Introduction:

The positive incremental net profit associated with the mixture of two firms through acquisition or merger is termed a synergy.

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