Neither Acquiring fiRm a nor Target fiRm B Has Any

question 308

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 value of firm B to firm A?

• A) $138,000
• B) $250,000
• C) $405,000
• D) $655,000
• E) $920,000

---

Definitions:

Edward VI

The King of England and Ireland from 1547 to 1553, noted for his young age at accession and for the Protestant reforms initiated during his reign.

Mary I

Queen of England from 1553 to 1558, known for her attempt to reassert Roman Catholicism in England and her persecution of Protestants, earning her the nickname 'Bloody Mary.'

Elizabeth I

Queen of England and Ireland from 1558 until her death in 1603, known for her strong leadership during the Elizabethan Era.

Lord Chamberlain's Men

A company of actors for which William Shakespeare wrote for most of his career, one of the leading theater groups in London during the Elizabethan and Jacobean eras.