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:

Suppressed Thoughts

Ideas or memories that are intentionally or unintentionally kept out of conscious awareness.

Laughter

A physical manifestation of joy or amusement, often considered as a universal language across cultures.

Freud

Sigmund Freud, an Austrian neurologist and the founding father of psychoanalysis, a methodology for treating psychopathology through dialogue.

Procedural Definition

A description of a sequence of operations, actions, or steps needed to achieve a particular end in a specified manner.