Firm a Has a Value of $200 Million and Firm

question 32

Multiple Choice

Firm A has a value of $200 million and Firm B has a value of $120 million. Merging the two would enable cost savings with a present value of $30 million. Firm A purchases Firm B for $130 million. What is the cost of this merger?

• A)$30 million
• B)$20 million
• C)$15 million
• D)$10 million

Comprehend the impact of environmental factors on human biological diversity.

Analyze the relationship between race, intelligence, and genetics.

Appreciate the historical efforts to combat racism and promote equality.

Understand the significance of skin color and other physical traits in human adaptation.

---

Definitions:

Gross Profit

The financial gain made after subtracting the cost of goods sold from the total sales revenue.

Net Sales

Net sales is the revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Inventory Available

The total quantity of goods a company has on hand for sale at any given time, including both finished goods and goods in production.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the company’s normal operating cycle if longer.