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 are the benefits of synergy associated with the acquisition of firm B by firm A?
A) $36,000
B) $40,000
C) $80,000
D) $120,000
E) $156,000

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 are the benefits of synergy associated with the acquisition of firm B by firm A?
A) $36,000 
B) $40,000 
C) $80,000 
D) $120,000 
E) $156,000

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 are the benefits of synergy associated with the acquisition of firm B by firm A?
A) $36,000 
B) $40,000 
C) $80,000 
D) $120,000 
E) $156,000

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