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:

Endorphins

Substances produced by the body that bind to brain receptors to diminish the sensation of pain and induce a state of intense happiness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling most functions of the body and mind.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain, central to the nervous system's function.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting neural signals.