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Bakers Mart Just Acquired Liver Works in a Stock Transaction

Question 8

Multiple Choice

Bakers Mart just acquired Liver Works in a stock transaction.The combined firm has a postmerger value of $174,900.As independent firms,Bakers Mart was worth $106,800 and Liver Works was worth $61,100.How much synergy was created by the merger?


A) $8,700
B) $7,500
C) $7,000
D) $2,500
E) $0

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