Microsoft Word - week 11_tutorial questions.docx Restful Industries has offered $12 million cash for all the ordinary shares in Sofa Distribution Pty...

Microsoft Word - week 11_tutorial questions.docx

Restful Industries has offered $12 million cash for all the ordinary shares in Sofa Distribution Pty Ltd. Based on recent market information, Sofa Distribution is worth $8 million as an independent operation. If the merger makes economic sense for Restful, what is the minimum estimated value of the synergistic benefits from the merger?