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

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 merger premium per share in this case?
A) $0 
B) $2.50 
C) $7.50 
D) $10.00 
E) $30.00

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 merger premium per share in this case?
A) $0 
B) $2.50 
C) $7.50 
D) $10.00 
E) $30.00

Neither Acquiring Firm a nor Target Firm B Has Any