Neither Acquiring fiRm a nor Target fiRm B Has Any

question 3

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 price per share of the merged firm after the acquisition is completed?

• A) $50.00
• B) $52.30
• C) $56.46
• D) $58.76
• E) $61.24

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Definitions:

Incentive Programs

Schemes designed to motivate and encourage people, typically employees, to achieve certain goals or performance levels.

Gratitude

A feeling of thankfulness and appreciation for what one has or has received.

Human Quality

Intrinsic characteristics or traits that define and distinguish humans, often related to moral, ethical, and emotional capacities.

Giver and Receiver

Roles in a transaction or relationship where one party provides, and the other accepts something.