Multiple Choice
Consider the following premerger information about Firm X and Firm Y: 
Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $3 per share.Also assume that neither firm has any debt before or after the merger.What is the value of the total equity of the combined firm,XY,if the purchase method of accounting is used?
A) $1,274,000
B) $1,316,000
C) $1,352,000
D) $1,422,000
E) $1,427,000
Correct Answer:
Verified
Correct Answer:
Verified
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