Greentree Holdings Has Announced Plans to Acquire Mackinac Corporation

Multiple Choice

Greentree Holdings has announced plans to acquire Mackinac Corporation.Greentree is trading for $15.75 per share and has a premerger value of $950 million,while Mackinac is trading for $24 per share and has a premerger value of $225 million dollars.If the projected synergies from the merger are $95 million,what is the maximum exchange ratio that Greentree could offer in a stock swap and still generate a positive NPV?

A) 0.933
B) 1.676
C) 2.167
D) 0.722
E) 1.885