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

question 40

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 cost = cash - PV_B
• $5 million = cash - $50 million

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Industry Affecting Commerce

Refers to how the operations, innovations, or issues within a specific industry can impact the broader commerce sector, often influencing economic activity and regulation.

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A provision of the Civil Rights Act of 1964 that prohibits employers from discriminating against employees on the basis of sex, race, color, national origin, and religion.

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