The Following Data on a Merger Are Given

question 30

Multiple Choice

The following data on a merger are given:

Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. What will be the postmerger price per share for Firm A's stock if Firm A pays in cash?

• A)$108
• B)$110
• C)$102
• D)$114

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