Firm a Has a Value of $100 Million and Firm

question 72

Multiple Choice

Firm A has a value of $100 million and Firm B has a value of $60 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $65 million. How much do Firm A's shareholders gain from this merger?

• A)$30 million
• B)$20 million
• C)$15 million
• D)$5 million

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Definitions:

Therapeutic Process

The dynamic and procedural aspects of therapy, including the methods, stages, and interactions between therapist and client.

Consciousness Raising

The act of increasing awareness or enlightening individuals about a particular set of facts or issues, often used in social and political movements.

Self-Esteem

Refers to an individual's subjective evaluation of their own worth and value.

Dependent

Relating to a variable in an experiment or study whose value depends on that of another.