What Is the Cost of Acquiring a If the V

question 32

Multiple Choice

What is the cost of acquiring A if the V and A merge? V is worth $450 and has 100 shares outstanding.A has a market value of $375 and has 40 shares outstanding.V to acquire A will swap 80 shares of V for the 40 shares of A. V believes the combination of VA was worth $925.

• A) $325
• B) $100
• C) $36
• D) $0