Suppose you have the following information concerning an acquiring firm (A) and a target firm (B) . Neither firm has any debt. The incremental value of the acquisition is estimated to be $250,000.
Firm B is willing to be acquired for $540,000 worth of Firm A's stock. 
What is the value of Firm B to A in this case?
Definitions:
Budget Allocation
The process of distributing available financial resources among different departments, projects, or sectors within an organization or government.
Utility Maximized
The point at which a consumer achieves the highest level of satisfaction possible, given their budget constraints and the prices of goods and services.
Price of Goods
The amount of money required to purchase a particular good or service in a market.
Revealed Preference Analysis
An economic theory assuming that the choices made by individuals reveal their preferences and the value they assign to those choices, used primarily in consumer behavior analysis.
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