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Both Firms Are 100% Equity-Financed

Question 13

Multiple Choice

Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. What is the cost of acquisition when stock financing is used? A) $75,126 B) $80,000 C) $81,555 D) $82,500 E) $83,754 What is the cost of acquisition when stock financing is used?


A) $75,126
B) $80,000
C) $81,555
D) $82,500
E) $83,754

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