When we are finding mv using free cash flow..
To find the synergy benefit= Mv of the combined co(post aquisition)- Mv of pre acquisition of acquirer n target co...
Here the mv is of company (debt and equity ) or just Mv of equity ....
Why some qn in the past paper to find synergy they used Mv of company (debt and equity) while other paper used only Mv value of equity
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Synergy
4y ago#1The two will be the same unless the amount of debt changes, because any benefit goes only to the equity and not to debt.
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