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

question 101

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 value of firm B to firm A?

• A) $232,000
• B) $408,000
• C) $452,000
• D) $488,000
• E) $532,000

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Definitions:

Phonemes

The smallest sound categories in human speech that distinguish meanings. Phonemes vary from language to language.

Morphemes

The smallest units of meaning in a language, such as roots, prefixes, and suffixes.

Babbling

A form of vocalizing, beginning at around 7 months, in which infants utter strings of syllables that combine a consonant sound and a vowel sound.

Recursive Utterances

Phrases or sentences that contain a structure within a similar structure, enabling complex expressions and ideas in language.