Firm a Is Planning on Merging with Firm B

question 52

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.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)None of the above

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Definitions:

Artificial Environment

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