Firms A and B are each currently worth $50 million but generate a $20 million gain when merged. If the cost of the merger was $5 million, how much did firm A pay for firm B?
A) $50 million
B) $55 million
C) $60 million
D)$65 million

Name: Firms A and B are each currently worth $50 million but generate a $20 million gain when merged. If the cost of the merger was $5 million, how much did firm A pay for firm B? A) $50 million B) $55 million C) $60 million D)$65 million
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Question

Quizplus · Accepted Answer

Cash paid = $50m + 5m = $55m

Firms a and B Are Each Currently Worth $50 Million