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?
A) $3.00
B) $3.67
C) $6.67
D) $24.33
E) $27.33

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?
A) $3.00 
B) $3.67 
C) $6.67 
D) $24.33 
E) $27.33

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 amount of the merger premium per share if firm A acquires firm B in an all cash deal?
A) $3.00 
B) $3.67 
C) $6.67 
D) $24.33 
E) $27.33

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