Sol Company Has Announced Plans to Acquire Luna Corporation at a Premium

question 37

Multiple Choice

Sol Company has announced plans to acquire Luna Corporation at a premium of 20% over the pre-announcement share price.Sol is trading for $42 per share,and has a premerger value of $14 billion.Prior to the announcement,Luna was trading for $71 per share,and currently has 106 million shares outstanding.The projected synergies from the merger are $1.5 billion.What is the maximum exchange ratio that Sol could offer in a stock swap transaction and still generate a positive NPV?

• A)1.97
• B)2.03
• C)2.43
• D)2.37
• E)0.58

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Nursing Process

A systematic method used by nurses to plan and provide care for patients, involving assessment, diagnosis, planning, implementation, and evaluation.

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All living organisms are seen as interacting, unified wholes that are more than the sums of their parts.

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A conceptual framework that examines how various components of a system interact and influence each other within the whole.