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

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Definitions:

Exploratory Research

A type of research aimed at gaining insights or discovering new ideas through qualitative methods, often used to understand a problem more thoroughly.

Structured

Organized and systematic in approach, often following a specific methodology or format to ensure consistency and effectiveness.

Research Techniques

A variety of methods and strategies used to gather data and information for the purpose of making business decisions.

BCG Growth-Market Share Matrix

A strategic planning tool that uses two dimensions: market growth rate and market share to categorize the business portfolio into four types: Stars, Question Marks, Cash Cows, and Dogs.