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. How many shares of firm A will be used to acquire firm B in an all-stock deal?
A) 12,000
B) 20,667
C) 22,333
D) 22,667
E) 23,333

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.  How many shares of firm A will be used to acquire firm B in an all-stock deal?
A) 12,000 
B) 20,667 
C) 22,333 
D) 22,667 
E) 23,333

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.  How many shares of firm A will be used to acquire firm B in an all-stock deal?
A) 12,000 
B) 20,667 
C) 22,333 
D) 22,667 
E) 23,333

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