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

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Definitions:

Antiterrorism Security

Measures and practices put in place to prevent, deter, and respond to terrorist activities.

Mass Transit

Public transportation systems that move large numbers of passengers within urban and suburban areas.

Informal Writing Style

A relaxed, conversational approach to writing that does not adhere strictly to formal grammar, punctuation, and structure rules.

Contractions

Shortened forms of words or phrases created by omitting certain letters and sounds, typically in informal language.