In an Unrelated Acquisition, If 5 Firms Are Interested in Acquiring

question 28

Multiple Choice

In an unrelated acquisition, if 5 firms are interested in acquiring a firm and each of the bidding firms had a current market value of $30,000 while the current market value of the target firm is $20,000, this acquisition is likely to generate economic profits of ________ for the acquiring firm.

• A) $10,000
• B) $20,000
• C) $50,000
• D) $0.00