What is the synergy from the merger of V and A? V was worth $450 and A had a market value of $375. V acquired A for $425 because they thought the combination of VA was worth $925.
A) $50
B) $100
C) $500
D) $475

Question

Quizplus · Accepted Answer

The synergy from the merger is calculated as the combined value of V and A ($925) minus the sum of their individual market values before the merger ($450 for V and $375 for A), which equals $925 - ($450 + $375) = $925 - $825 = $100.

What Is the Synergy from the Merger of V and A