Does this merger create synergy

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Telecom BC Inc. telecommunication company is looking to acquire Beat Plus Inc. heart rate check app. After-tax cash flows of Telecom BC are $49mln while for Beat Plus - $6mln. Both firms are all-equity firms. The rate of return for both firms is 14%. After the acquisition, the cash flows of Telecom BC Inc will become. $57mln. Does this merger create synergy? If yes, what is this synergy in $?

Reference no: EM133306394

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