If Firm a Acquires Firm B and Firm B's Shareholders

Multiple Choice

If Firm A acquires Firm B and Firm B's shareholders are given the fraction x of the combined firm, then the cost of this merger is

A) Cost = (PVAB) - (x) PVB.
B) Cost = (x) PVAB - PVB.
C) Cost = PVAB - (x) PVA.
D) Cost = (x) PVAB - (x) PVB.