Firm a Is Planning on Merging with Firm B

question 3

Multiple Choice

Firm A is planning on merging with Firm B.Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A because no synergy will be created.Firm A currently has 3,000 shares of stock outstanding at a market price of $15 a share.Firm B has 1,000 shares outstanding at a price of $10 a share.What is the value of the merged firm?

• A)$25,000
• B)$45,000
• C)$55,000
• D)$60,000
• E)$50,000

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Latinos

People of Latin American origin or descent, often residing in the United States, representing a diverse group of backgrounds, countries, and cultures.

United States

A federal republic in North America comprised of 50 states, a federal district, five major self-governing territories, and various possessions.

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Individuals of Japanese ancestry residing in the United States, including those born in Japan or of Japanese heritage.

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Areas where people, especially during wartime or political turmoil, are forcibly relocated and often detained.