Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the value of one share of stock in AB if the merger is a cash deal?
A) $18.00
B) $19.10
C) $20.00
D) $21.30
E) $25.47

Question

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000.  What is the value of one share of stock in AB if the merger is a cash deal?
A) $18.00 
B) $19.10 
C) $20.00 
D) $21.30 
E) $25.47

Quizplus · Accepted Answer

The Answer of Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000.  What is the value of one share of stock in AB if the merger is a cash deal?
A) $18.00 
B) $19.10 
C) $20.00 
D) $21.30 
E) $25.47

Firm B Is Willing to Be Acquired by Firm a at a Price