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 amount of the merger premium per share if firm A acquires firm B in an all cash deal?

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 amount of the merger premium per share if firm A acquires firm B in an all cash deal?

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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 amount of the merger premium per share if firm A acquires firm B in an all cash deal?

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