Greentree Holdings Has Announced Plans to Acquire Mackinac Corporation

question 71

Multiple Choice

Greentree Holdings has announced plans to acquire Mackinac Corporation.Greentree is trading for $15.75 per share and has a premerger value of $950 million,while Mackinac is trading for $24 per share and has a premerger value of $225 million dollars.If the projected synergies from the merger are $95 million,what is the maximum cash offer per share that Greentree could make and still generate a positive NPV?

• A)$26.40
• B)$40.22
• C)$29.69
• D)$52.01
• E)$34.13

---

Definitions:

Countertransference

The emotional reaction of a therapist toward the client that may interfere with objectivity, often based on the therapist's own unresolved issues.

Empathy

The ability to understand and share the feelings of another, fostering emotional connection and support.

Dysfunctional

Pertains to something that is not operating normally or effectively, often causing negative effects.

Referral

The process of directing someone to another professional or agency for additional services or support.