If Firm A acquires Firm B and Firm B's shareholders are given the fraction x of the combined firm, then the cost of this merger is
A) Cost = (PVAB) − (x) PVB.
B) Cost = (x) PVAB − PVB.
C) Cost = PVAB − (x) PVA.
D) Cost = (x) PVAB − (x) PVB.
Correct Answer:
Verified
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