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 stock will firm AB have if the merger is an all-stock deal?
A) 52,000
B) 60,667
C) 62,333
D) 62,667
E) 63,333

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 stock will firm AB have if the merger is an all-stock deal?
A) 52,000 
B) 60,667 
C) 62,333 
D) 62,667 
E) 63,333

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 stock will firm AB have if the merger is an all-stock deal?
A) 52,000 
B) 60,667 
C) 62,333 
D) 62,667 
E) 63,333

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