ABC CorpHas Offered One Million Shares Having a Total Market Value

question 52

Multiple Choice

ABC Corp.has offered one million shares having a total market value of $8 million for XYZ Corp.After the merger is announced, shares in ABC trade for $7 each.If ABC is confident about XYZ's value, what has happened to the cost of the merger?

• A)It increases by $1 million
• B)It decreases by $1 million
• C)It increases by $9 million
• D)It remains constant Pre-Announcement:
• Cost of merger = Value of acquired firm
• = ($8 x 1 million) - value of acquired firm
• = $8 million - value of acquired firm
• Post-Announcement:
• Cost of merger = $7 million - value of acquired firm

Apply knowledge of economic indicators to assess the health and trends in an economy.

Learn how to calculate changes in price levels and inflation rates between different years.

Understand the conceptual distinction between measuring GDP using current-year versus base-year prices.

Understand the conceptual definition and computation of disposable income.

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Definitions:

Autonomy

Autonomy is the capability or right of individuals to make their own choices and govern themselves, fundamental in ethics, law, and personal development.

Morally Acceptable

Morally acceptable describes actions or decisions that are consistent with ethical norms or standards of a society, deemed appropriate or right according to moral principles.

Undesirable Genes

Genetic traits viewed as negative or harmful, often within the context of genetic engineering or selection.

Negative Eugenics

Practices aimed at decreasing the incidence of traits deemed undesirable by discouraging reproduction by persons having such traits.