Firm a Has a Market Value of $212,000 While Firm

question 11

Multiple Choice

Firm A has a market value of $212,000 while Firm B's market value is $87,000.Firm A just acquired Firm B for $92,500 cash.What is the net present value of the acquisition if the merger creates $7,500 of synergy?

• A)$7,500
• B)$94,500
• C)-$5,500
• D)$2,000
• E)-$13,000

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Definitions:

Fibula

The smaller of the two bones in the lower leg, running parallel to the tibia and playing an important role in stabilizing the ankle.

Talus

A bone in the ankle that sits above the calcaneus (heel bone) and below the tibia (shinbone), critical for foot movement and stability.

Cuneiform Bones

A group of three bones in the foot located between the navicular bone and the first, second, and third metatarsal bones.

Hematopoiesis

The production of blood cells and platelets, which occurs in the bone marrow.