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

question 94

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 price per share of firm AB if the merger is an all-stock deal?

• A) $18.00
• B) $18.70
• C) $18.80
• D) $19.32
• E) $21.00

---

Definitions:

Assertive

Displaying confidence and directness in claiming one's rights or putting forward one's demands without being aggressive.

Subordinately Defensive

A behavior exhibited by lower-ranking individuals in a hierarchy, aimed at protecting themselves from perceived threats or aggression from more dominant figures.

Domineering Behavior

A controlling and aggressive manner of interacting with others, often involving the exercise of power in an authoritarian way.

Assert Their Thoughts

The act of expressing one's opinions or beliefs confidently and forcefully.