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

question 25

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 = (PV_AB)− (x)PV_B.
• B)Cost = (x)PV_AB − PV_B.
• C)Cost = PV_AB − (x)PV_A.
• D)Cost = (x)PV_AB − (x)PV_B.

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Definitions:

Nonverbal Communication

The transmission of messages or signals through a non-linguistic means, such as facial expressions, body language, and gestures, rather than words.

Intensifiers

Words or phrases used to give emphasis or strength to another word, often modifying adjectives or adverbs.

Gender

The socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender diverse people.

Communication

The process through which people transmit information about their ideas and feelings to one another.