Pearl, Inc., has offered $458 million cash for all of the common stock in Jam Co

Question

Pearl, Inc., has offered $458 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $426 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Pearl, Inc., has offered $458 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $426 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Explanation / Answer

Minimum economic value = purchase price - market value

Minimum economic value = 458,000,000 - 426,000,000

Minimum economic value = $32,000,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.