Who, Inc., has offered $542 million cash for all of the common stock in Dunn IT Corporation. Based on recent market information, Dunn IT is worth $504 million as an independent operation. If the merger makes economic sense for Who, Inc., what is the minimum estimated value of the synergistic benefits from the merger

The synergistic benefits from the merger = $38 million

Explanation:

Given:

Who Inc. offered amount = $542 million

Dunn IT current worth = $504 million

Computation of synergistic benefits from the merger:

The synergistic benefits from the merger = Who Inc. offered amount - Dunn IT current worth

The synergistic benefits from the merger = $542 million - $504 million

The synergistic benefits from the merger = $38 million