A Merger Is Expected to Produce Cost Savings of $50

question 19

Multiple Choice

A merger is expected to produce cost savings of $50 million and the acquired firm's shareholders will receive a premium of 20% over the $150 million value of their firm.The gain of the merger to the acquirer is:

• A) $20 million.
• B) $30 million.
• C) $50 million.
• D) $130 million.

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Definitions:

Hypothyroidism

A condition characterized by the underproduction of thyroid hormone by the thyroid gland, leading to symptoms like fatigue, weight gain, and cold intolerance.

Zona Glomerulosa

The outermost layer of the adrenal cortex that secretes mineralocorticoids, such as aldosterone, which regulate electrolyte and water balance.

Adrenal Gland

A pair of endocrine glands located above the kidneys that produce a variety of hormones including adrenaline and cortisol.

Reticular Fibers

Fine, threadlike fibers made of collagen type III, supporting the soft tissue of organs.