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:

Active Listening

A communication technique that involves giving full attention to the speaker, understanding their message, and responding thoughtfully.

Focusing Attention

The process of directing one's awareness to relevant stimuli while ignoring irrelevant information.

Nonverbal Signals

Communication methods other than spoken or written words, including gestures, facial expressions, and body language.

Principles of Psychology

Fundamental theories and concepts that form the foundation of the study of the mind and behavior.