Firm V Was Worth £450 and Firm a Had a Market

question 61

Multiple Choice

Firm V was worth £450 and Firm A had a market value of £375.Firm V acquired Firm A for £425 because they thought the combination of the new Firm VA was worth £925.What is the NPV from
The merger of Firm V and Firm A?

• A)£0
• B)£50
• C)£425
• D)£450
• E)None of the above.

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