Jay's Has a Market Value of $3,600 and Believes That

question 69

Multiple Choice

Jay's has a market value of $3,600 and believes that if it acquires Benny's in a stock transaction the combination of the new firm will be worth $6,000 given the expected synergy of $200.If Jay's wants to keep 75 percent of the synergy for itself,what should be the value of the stock it issues to Benny's?

• A)$2,050
• B)$2,250
• C)$2,150
• D)$2,000
• E)$2,500

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Definitions:

Oppositional Defiant Disorder (ODD)

A behavioral disorder in children and adolescents characterized by a persistent pattern of angry or irritable mood, argumentative/defiant behavior, and vindictiveness.

Conduct Disorder (CD)

A psychological condition identified during childhood or adolescence, marked by a continuous trend of aggressive and destructive actions.

Autism Spectrum Disorder

A variety of conditions related to brain development that lead to difficulties in communication, social skills, and repeated patterns of behavior.

Repeats Words

The repetition of words or phrases, a behavior that can indicate various cognitive, linguistic, or developmental disorders.