Barlow Manufacturing Has Announced Plans to Acquire Hull Enterprises

question 46

Multiple Choice

Barlow Manufacturing has announced plans to acquire Hull Enterprises.Barlow is trading for $19.25 per share and has a premerger value of $3 billion,while Hull is trading for $41.35 per share and has a premerger value of $950 million dollars.If the projected synergies from the merger are $425 million,what is the maximum cash offer per share that Barlow could make and still generate a positive NPV?

• A)$98.37
• B)$60.60
• C)$41.35
• D)$47.20
• E)$59.85

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Definitions:

Photosynthetic Pigment

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Visible Wavelengths

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 380 to 750 nanometers.

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A learning process through which students develop knowledge, skills, and values from direct experiences outside a traditional academic setting.

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A branch of mathematics dealing with the likelihood of occurrence of different events.