Consider the Following Premerger Information About a Bidding Firm (Firm

question 51

Multiple Choice

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T) .Assume that neither firm has any debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $2,500.What is the NPV of the merger assuming that Firm T is willing to be acquired for $28 per share in cash?

• A)$100
• B)$400
• C)$1,800
• D)$2,200
• E)$2,600

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Definitions:

Moral Worth

The value of actions or principles based on their ethical soundness or righteousness.

Functionalist Approach

A perspective in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.

Restorative Justice

A system of criminal justice that focuses on the rehabilitation of offenders through reconciliation with victims and the community.

Restorative Justice

A methodology in justice centered on amending the behavior of offenders by facilitating their reconciliation with victims and the broader community.