Firm a Has a Value of $100 Million and Firm

question 67

Multiple Choice

Firm A has a value of $100 million and Firm B has a value of $70 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $75 million. What is the gain from this merger?

• A)$30 million
• B)$20 million
• C)$15 million
• D)$75 million

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Definitions:

Racial Divisions

The separation or categorization of people based on racial or ethnic differences, often leading to inequality and discrimination.

Racial Issue

Social, economic, or political problems or controversies that arise out of perceptions, prejudices, and inequities associated with racial categories or identities.

Black Underclass

A segment of the African American community experiencing systemic socio-economic disadvantages and discrimination, often living in poor urban areas.

William Julius Wilson

An influential American sociologist noted for his work on urban sociology, race, and class in the United States.