Neither Acquiring Firm a nor Target Firm B Has Any

question 41

Multiple Choice

Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What are the synergistic benefits that arise from the acquisition of firm B?

• A) $138,000
• B) $250,000
• C) $405,000
• D) $655,000
• E) $920,000

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Definitions:

Account Management Policies

Guidelines and rules governing the management of customer accounts, focusing on maintaining and enhancing customer relationships.

Selling and Customer Service Activities

Business operations that focus on directly engaging with customers to sell products and provide after-sales support to enhance customer satisfaction and loyalty.

Workload Method

A technique used in project management and operations to estimate the amount of effort and resources required to complete a task or project.

Salesforce Size

The total number of representatives or agents that make up a company's sales team.