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:

Need For Affiliation

A social need that drives individuals to seek and form relationships with others, motivated by a desire for companionship and acceptance.

Acquired Needs Theory

A motivational theory that suggests individuals develop certain needs through their life experiences, including the needs for achievement, affiliation, and power.

Companionship

The feeling of fellowship or friendship that arises from being with others, often contributing to emotional and social well-being.

Need For Power

An individual's desire to control or influence others, a concept in psychology that relates to motivation.