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

question 195

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. How many shares of stock will firm AB have if the merger is an all-stock deal?

• A) 52,000
• B) 60,667
• C) 62,333
• D) 62,667
• E) 63,333

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Definitions:

Nature-Nurture Controversy

A debate concerning the relative importance of an individual's innate qualities (nature) versus personal experiences (nurture) in determining or causing physical and behavioral traits.

Biological Explanation

An approach interpreting behaviours and phenomena based on biological factors such as genetics, brain structures, and evolutionary influences.

Aggression

Behavior intended to harm or injure another being, either physically or psychologically.

Incidence Of Murders

The frequency or number of murder cases that occur within a defined population and time period.