Neither Acquiring fiRm a nor Target fiRm B Has Any

question 239

Multiple Choice

Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What is the NPV for acquiring firm B?

• A) The NPV is negative
• B) $115,000
• C) $160,000
• D) $235,000
• E) $260,000

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Definitions:

Internal Colonialism

A concept that explains how a country's dominant group exploits minority groups for its economic advantage, often creating economic and political inequalities within a nation.

Brain Size

The physical measurement of the brain's volume, often discussed in relation to cognitive abilities or evolutionary biology.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to elicit a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without requiring any learning.