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

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Provisions in a loan agreement that limit the borrower's actions in certain ways, ensuring the repayment of the loan.