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Question: Three Guys Burgers, Inc., has offered $15.


Three Guys Burgers, Inc., has offered $15.3 million for all of the common stock in Two Guys Fries Corp. The current market capitalization of Two Guys as an independent company is $12.1 million. Assume the required return on the acquisition is 9 percent and the synergy from the acquisition is a perpetuity. What is the minimum annual synergy that Three Guys feels it will gain from the acquisition?


2.99

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