Firm a Is Planning on Merging with Firm B

question 31

Multiple Choice

Firm A is planning on merging with Firm B.Firm A will pay Firm B's equityholders the current value of their equity in shares of FirmA.Firm A currently has 2,300 shares of equity outstanding at a
Market price of £20 a share.Firm B has 1,800 shares outstanding at a price of £15 a share.What is
The value of the merged firm?

• A)£73,000
• B)£75,000
• C)£76,667
• D)£77,778
• E)£78,000

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Definitions:

Criminals

Individuals who have committed acts that violate laws and are therefore subject to legal punishment.

Tarasoff

Refers to a legal case and resulting duty that mandates mental health professionals to warn individuals of credible threats made against them by a patient.

Therapist

A professional trained to treat emotional, mental, and behavioral disorders through various psychological techniques and therapies.

Warn

To inform someone about a possible danger, problem, or other unpleasant situation, typically to prevent or minimize damage.