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9 April, 08:58

Who, Inc., has offered $542 million cash for all of the common stock in Dunn IT Corporation. Based on recent market information, Dunn IT is worth $504 million as an independent operation. If the merger makes economic sense for Who, Inc., what is the minimum estimated value of the synergistic benefits from the merger

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  1. 9 April, 09:06
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    The synergistic benefits from the merger = $38 million

    Explanation:

    Given:

    Who Inc. offered amount = $542 million

    Dunn IT current worth = $504 million

    Computation of synergistic benefits from the merger:

    The synergistic benefits from the merger = Who Inc. offered amount - Dunn IT current worth

    The synergistic benefits from the merger = $542 million - $504 million

    The synergistic benefits from the merger = $38 million
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Home » Business » Who, Inc., has offered $542 million cash for all of the common stock in Dunn IT Corporation. Based on recent market information, Dunn IT is worth $504 million as an independent operation. If the merger makes economic sense for Who, Inc.
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