Multiple Choice
Firm A has a value of $150 million, and B has a value of $100 million. Merging the two would allow a cost savings with a present value of $40 million. Firm A purchases B for $120 million. What is the gain from this merger?
A) $20 million
B) $40 million
C) $100 million
D) $80 million
Correct Answer:
Verified
Correct Answer:
Verified
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