Firm B Is Willing to Be Acquired by Firm a at a Price

question 271

Multiple Choice

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the NPV of the merger of firm B by firm A in an all-stock deal?

• A) $28,127
• B) $31,000
• C) $37,639
• D) $42,877
• E) $44,000

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Definitions:

Battery

A criminal offense involving the unlawful physical act or force applied to another person, resulting in harmful or offensive contact.

Intentionally

The act of doing something deliberately or on purpose, not by accident or unintentionally.

Conversions

The act of changing the ownership or purpose of property or assets without the permission of the owner.

Trespasses

Acts of entering someone’s land or property without permission, which can be grounds for a legal claim.