CBA Corp Is Worth $15 Million as a Stand-Alone Firm

question 35

Multiple Choice

CBA Corp. is worth $15 million as a stand-alone firm. ABC Corp. has offered 350,000 shares valued at $50 each to merge with CBA. After the merger, however, ABC's shares are worth only $45 per share. What was the cost of the merger?

• A) -$1.75 million
• B) $0.75 million
• C) $1.75 million
• D)$3.25 million

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Definitions:

Breast Cancer

A type of cancer that forms in the cells of the breasts, affecting both men and women but predominantly women.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, resulting from the body's inability to produce or properly use insulin.

Vaginal Dryness

A condition characterized by a lack of moisture in the vaginal area, often leading to discomfort during intercourse and daily activities.

Infertility

The failure to establish a pregnancy after 12 months of regular, unprotected sexual intercourse. Also referred to as impaired fecundity.