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:

Direct Formatted Message

A communication method where information is presented straightforwardly and without unnecessary embellishments, often used for clarity and efficiency.

Closing Paragraph

The final section of a piece of writing, summarizing the main points and providing a concluding thought or call to action.

Routine Request

A standard or usual request often encountered in a particular context or environment.

Persuasive

Capable of convincing someone to do or believe something through reasoning or the use of emotional appeal.