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Firm a Has a Market Value of $318,000 While Firm

Question 3

Multiple Choice

Firm A has a market value of $318,000 while Firm B's market value is $69,000.Firm A just acquired Firm B for $75,000 cash.What is the net present value of the acquisition if the merger creates $15,500 of synergy?


A) $7,000
B) $4,500
C) −$6,000
D) $9,500
E) −$13,000

Correct Answer:

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