Multiple Choice
Firm A has a value of $100 million and Firm B has a value of $60 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $65 million. How much do Firm A's shareholders gain from this merger?
A) $30 million
B) $20 million
C) $15 million
D) $5 million
Correct Answer:
Verified
Correct Answer:
Verified
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