Firms a and B Are Each Worth $50 Million, but Generate

question 101

Multiple Choice

Firms A and B are each worth $50 million, but generate a $20 million gain when merged.If the cost of the merger was $5 million, how much did Firm A pay for Firm B?

• A)$50 million
• B)$55 million
• C)$60 million
• D)$65 million