Firm B Is Willing to Be Acquired by fiRm a at a Price

question 154

Multiple Choice

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the value of one share of stock in AB if the merger is a cash deal?

• A) $18.00
• B) $19.10
• C) $20.00
• D) $21.30
• E) $25.47

Analyze the characteristics and implications of being an entity theorist versus an incremental theorist.

Identify different forms of decision avoidance and their underlying reasons.

Understand how social psychology explains attraction and changes in perception under specific conditions.

Understand different stages of moral development and be able to identify characteristics of each stage.

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