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DEF Stockholders Are Paid the Current Market Value of Their

question 114

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DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000.   What is the total value of the merged firm? A)  $135,000 B)  $490,000 C)  $625,000 D)  $725,800 E)  $760,000 What is the total value of the merged firm?


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