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Firm B Is Willing to Be Acquired by Firm a at a Price

Question 34

Multiple Choice

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the value of one share of stock in AB if the merger is a cash deal? A) $18.00 B) $19.10 C) $20.00 D) $21.30 E) $25.47 What is the value of one share of stock in AB if the merger is a cash deal?


A) $18.00
B) $19.10
C) $20.00
D) $21.30
E) $25.47

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