Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Nets & Flicks would like to take over Jeff & Bezos. Both companies are debt-free. For that, Nets & Flicks is offering
to Jeff & Bezos cash and cash-like equivalents in the total amount of $73,000. Nets & Flicks currently has a total
of 1,750 shares, and the market value of each share is $20. Jeff & Bezos, on the other hand, currently has a total of
2,500 shares, and the market value of each share is $28. The merger of these two companies would
have a $5,000 incremental value if it is successful. The net present value of the merger from the point of view
of Nets & Flicks equals.
Multiple Choice
$3,000
$4,000
$2,000
$5,000
$6,000
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Transcribed Image Text:Nets & Flicks would like to take over Jeff & Bezos. Both companies are debt-free. For that, Nets & Flicks is offering to Jeff & Bezos cash and cash-like equivalents in the total amount of $73,000. Nets & Flicks currently has a total of 1,750 shares, and the market value of each share is $20. Jeff & Bezos, on the other hand, currently has a total of 2,500 shares, and the market value of each share is $28. The merger of these two companies would have a $5,000 incremental value if it is successful. The net present value of the merger from the point of view of Nets & Flicks equals. Multiple Choice $3,000 $4,000 $2,000 $5,000 $6,000
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