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

Question 33

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. How many shares of outstanding stock will firm AB have if the merger is a cash deal? A) 36,400 B) 40,000 C) 43,600 D) 46,000 E) 52,000 How many shares of outstanding stock will firm AB have if the merger is a cash deal?


A) 36,400
B) 40,000
C) 43,600
D) 46,000
E) 52,000

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