Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What is the value of firm B to firm A?
A) $138,000
B) $250,000
C) $405,000
D) $655,000
E) $920,000

Question

Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.  What is the value of firm B to firm A?
A) $138,000 
B) $250,000 
C) $405,000 
D) $655,000 
E) $920,000

Quizplus · Accepted Answer

The Answer of Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.  What is the value of firm B to firm A?
A) $138,000 
B) $250,000 
C) $405,000 
D) $655,000 
E) $920,000

Neither Acquiring Firm a nor Target Firm B Has Any