Consider the Following Premerger Information About Firm X and Firm

question 22

Multiple Choice

Consider the following premerger information about Firm X and Firm Y: Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $3 per share.Also assume that neither firm has any debt before or after the merger.What is the value of the total equity of the combined firm,XY,if the purchase method of accounting is used?

• A)$1,274,000
• B)$1,316,000
• C)$1,352,000
• D)$1,422,000
• E)$1,427,000

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Definitions:

Neo-Freudian Theorist

Psychologists who were influenced by Sigmund Freud's theories but developed their own distinct psychological theories, often differing in their emphasis on social and cultural factors.

Freud's Theory

A set of psychoanalytic theories originated by Sigmund Freud, emphasizing unconscious psychological forces and childhood experiences in shaping personality and behavior.

Scientific Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Genital Stage

In Freudian psychology, the final stage of psychosexual development, occurring in puberty, where sexual interests mature.