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 merger premium per share in this case?
A) $0
B) $2.50
C) $7.50
D) $10.00
E) $30.00
Correct Answer:
Verified
Q132: Q133: Both firms are 100% equity-financed. Firm A Q134: Neither acquiring firm A nor target firm Q135: Firm B is willing to be acquired Q136: Jackson & Jackson (J&J) has agreed to Q138: Firm A is being acquired by Firm Q139: Cavalier Enterprises has agreed to be acquired Q140: Firm B is willing to be acquired Q141: DEF stockholders are paid the current market Q142: The Sligo Co. is planning on merging
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