MCorp,with a Book Value of $20 Million and a Market

question 5

Multiple Choice

MCorp,with a book value of $20 million and a market value of $30 million,has merged with NCorp,with a book value of $6 million and a market value of $8 million at a price of $9 million.Under the purchase method,what will be the total assets on the book of the new merged firm?

• A)$26 million
• B)$29 million
• C)$38 million
• D)$39 million

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Definitions:

Value-based Marketing

A marketing approach that focuses on delivering products and services based on the perceived value they provide to customers, aiming to maximize customer satisfaction and retention.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically identified as product, price, place, and promotion.

Price

The amount of money required to purchase a good or service.

Marketing Mix

The mix of elements a company can manipulate to encourage consumer buying of its goods, usually comprised of product, price, place, and promotion.