Firm V has a market value of $450 and Firm A has a market value of $375.If the two firms merged their estimated combined value is $900.What is the synergy of the merger?

Question

Quizplus · Accepted Answer

The market value of the merged firm is $900, which is $75 more than the sum of the market values of the individual firms ($450 + $375 = $825). This additional value is referred to as the synergy of the merger, and in this case, it would be $75. Therefore, the best choice is B.

Firm V Has a Market Value of $450 and Firm