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 NPV of the merger of ﬁrm B by ﬁrm A in an all-stock deal?

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 NPV of the merger of ﬁrm B by ﬁrm A in an all-stock deal?

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 NPV of the merger of ﬁrm B by ﬁrm A in an all-stock deal?

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