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 outstanding stock will firm AB have if the merger is a cash deal?
A) 36,400
B) 40,000
C) 43,600
D) 46,000
E) 52,000

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.  How many shares of outstanding stock will firm AB have if the merger is a cash deal?
A) 36,400 
B) 40,000 
C) 43,600 
D) 46,000 
E) 52,000

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.  How many shares of outstanding stock will firm AB have if the merger is a cash deal?
A) 36,400 
B) 40,000 
C) 43,600 
D) 46,000 
E) 52,000

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