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 true cost of the acquisition of firm B by firm A in an all-stock deal?
A) $401,807
B) $408,000
C) $423,873
D) $432,939
E) $488,000

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 true cost of the acquisition of firm B by firm A in an all-stock deal?
A) $401,807 
B) $408,000 
C) $423,873 
D) $432,939 
E) $488,000

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 true cost of the acquisition of firm B by firm A in an all-stock deal?
A) $401,807 
B) $408,000 
C) $423,873 
D) $432,939 
E) $488,000

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