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Neither Acquiring fiRm a nor Target fiRm B Has Any

Question 103

Multiple Choice

Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What is the value of firm B to firm A? A) $138,000 B) $250,000 C) $405,000 D) $655,000 E) $920,000 What is the value of firm B to firm A?


A) $138,000
B) $250,000
C) $405,000
D) $655,000
E) $920,000

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