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 value of ﬁrm AB if the merger is an all-stock deal?
A) $720,000
B) $800,000
C) $962,000
D) $1,092,000
E) $1,172,000

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.  What is the value of ﬁrm AB if the merger is an all-stock deal?
A) $720,000 
B) $800,000 
C) $962,000 
D) $1,092,000 
E) $1,172,000

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.  What is the value of ﬁrm AB if the merger is an all-stock deal?
A) $720,000 
B) $800,000 
C) $962,000 
D) $1,092,000 
E) $1,172,000

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