Firm a Has a Value of $200 Million, and B

question 33

Multiple Choice

Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?

• A) $30 million
• B) $20 million
• C) $15 million
• D) $10 million

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Definitions:

Art Movement

A tendency or style in art with a specific common philosophy or goal, followed by a group of artists during a restricted period of time.

Preliminary Studies

Early investigations or research conducted to gather information, test theories, or evaluate materials before embarking on a larger project.

Indoor Scenes

Artworks that depict the interior of buildings or enclosed spaces, focusing on domestic, private, or architectural aspects.

Impressionist Artist

An artist associated with the Impressionist movement, which emerged in France in the late 19th century, characterized by emphasis on light, movement, and daily life through brushstrokes and color.