ABC CorpHas Offered 1 Million Shares Having a Total Market Value

question 71

Multiple Choice

ABC Corp.has offered 1 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.

---

Definitions:

Price

The cash amount presumed, required, or allocated in remuneration for something.

Supply Curve

The supply curve illustrates the relationship between the price of a good or service and the quantity of that good or service that a seller is willing and able to supply.

Demand Curve

An illustrated chart demonstrating how the price of an item correlates with consumer demand for it.

Beef Prices

Beef prices are determined by the market dynamics of supply and demand for beef, influenced by factors like feed costs, consumer demand, and industry regulations.