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 value of firm AB if the merger is an all cash deal?
A) $640,000
B) $720,000
C) $764,000
D) $800,000
E) $936,000

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 value of firm AB if the merger is an all cash deal?
A) $640,000 
B) $720,000 
C) $764,000 
D) $800,000 
E) $936,000

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 value of firm AB if the merger is an all cash deal?
A) $640,000 
B) $720,000 
C) $764,000 
D) $800,000 
E) $936,000

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