Holmes, Inc., has offered $215 million cash for all of the common stock in Watson Corporation. Based on recent market information, Watson is worth $193 million as an independent operation. If the merger makes economic sense for Holmes, what is the minimum estimated value of the synergistic benefits from the merger

Respuesta :

Answer:

the minimum estimated value of the synergistic benefits from the merger is $22 million

Explanation:

The computation of the minimum estimated value of the synergistic benefits from the merger is given below:

= Holmes Offered value in cash - watson worth

= $215 million - $193 million

= $22 million

Hence, the minimum estimated value of the synergistic benefits from the merger is $22 million