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

question 148

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 true cost of the acquisition of firm B by firm A in an all-stock deal?

• A) $401,807
• B) $408,000
• C) $423,873
• D) $432,939
• E) $488,000

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Power Politics

The strategies used by individuals or groups within political organizations or structures to acquire, maintain, or exercise power and influence.

Outstanding Leader

A person distinguished by their exceptional leadership qualities, inspiring vision, strong communication skills, and the ability to guide others toward success.

Winston Churchill

A British politician, army officer, and writer, who served as Prime Minister of the United Kingdom during World War II and again in the early 1950s.