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

question 276

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 firm AB if the merger is an all cash deal?

• A) $640,000
• B) $720,000
• C) $764,000
• D) $800,000
• E) $936,000

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Definitions:

Ophthalmoscope

A medical device used by doctors to examine the inside of the eye, including the retina and the optic nerve.

Astigmatism Test Chart

A visual tool used in eye examinations to detect astigmatism by measuring how light is perceived by the eye from different angles.

Visual Acuity

A measure of the clarity or sharpness of vision, typically assessed using a Snellen chart.

Flattens

Becomes level or even without any raised areas or bumps; reduces in thickness or protrusion.