Firm a Has a Value of $100 Million and Firm

question 72

Multiple Choice

Firm A has a value of $100 million and Firm B has a value of $60 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $65 million. How much do Firm A's shareholders gain from this merger?

• A)$30 million
• B)$20 million
• C)$15 million
• D)$5 million

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Definitions:

Pyruvate

A key intermediate in several metabolic pathways, crucial for energy production through cellular respiration.

Tricarboxylic Acid Cycle

A series of chemical reactions used in aerobic respiration to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

Oxaloacetate

A 4-carbon compound; an important intermediate in the citric acid cycle and in the.

Acetyl CoA

A molecule that plays key roles in metabolism, participating in synthesis and oxidation processes within cells.