Firm a Has a Value of $100 Million and Firm

question 67

Multiple Choice

Firm A has a value of $100 million and Firm B has a value of $70 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $75 million. What is the gain from this merger?

• A)$30 million
• B)$20 million
• C)$15 million
• D)$75 million

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Definitions:

Motor Neuron

A type of neuron that sends impulses from the brain or spinal cord to a muscle or gland, enabling movement and action.

Nerves

Bundled axons that form neural cables connecting the central nervous system with muscles glands, and sense organs.

Axons

The long, slender projections of a neuron that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Interneurons

Neurons located in the central nervous system that process and relay information between sensory neurons and motor neurons.