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

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Definitions:

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Enforcement

The act of compelling observance of or compliance with a law, rule, or agreement.

Mentors

Experienced and trusted advisors who guide and advise less experienced individuals in their personal development or career progression.

Heroes

Individuals admired for their bravery, outstanding achievements, or noble qualities, often serving as inspirations to others.