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After Analyzing the Particulars of Firms a and B and Their

question 103

Essay

After analyzing the particulars of Firms A and B and their proposed merger, comment on the desirability of the merger:
A.The merged firms are expected to be worth $26,000.Be sure to mention EPS of the merged entity, etc.


Definitions:

Unemployment Taxes

Unemployment taxes are taxes paid by employers to fund the unemployment insurance system, providing benefits to workers who have lost their jobs.

FICA-OASDI

Federal Insurance Contributions Act - Old-Age, Survivors, and Disability Insurance; a payroll tax that funds Social Security and Medicare in the United States.

Workers' Compensation

Insurance offering medical benefits and wage replacement to employees who become injured while on the job.

Clerical Support

Administrative assistance typically involving office or paper work.

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