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M&a Practice QuestionsPRACTICE QUESTIONS1. Suppose Microsoft wants to acquire ExxonMobil and thinks that Newco’s DCF value will be $550 billion. (Currently, Microsoft and ExxonMobil’s market capitalizations are at $278 billion and $256 billion, respectively.) Suppose ExxonMobil thinks, however, that because the two companies’ businesses are so unrelated, Newco will suffer a diversification discount, and will.
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Companies’ BusinessesMinimum Exchange RatiosNewco’S Dcf ValueOracle Corporation