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

question 296

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 AB if the merger is an all cash deal?

• A) $640,000
• B) $720,000
• C) $764,000
• D) $800,000
• E) $936,000

---

Definitions:

Resolution

The process of reducing or separating something into its components or the clarity and detail of an image.

Field Diameter

The apparent size of an area visible through the microscope lens, often measured in millimeters or micrometers.

Millimeters

A unit of length in the metric system, equal to one thousandth of a meter.

Iris Diaphragm

A thin, adjustable circular structure in optical devices or the eye that controls the amount of light passing through by changing its size.