firm a is acquiring firm b by exchanging 25,000 of its shares for all the shares in firm b. the total earnings, shares outstanding, and price per share for the two firms are presented in the following table. Firm a: total earnings $1,000,000 shares outstanding 100,000 price per share $50 firm b: total earnings $400,000 shares outstanding 80,000 price per share $30. How many shares will be outstanding in the merged firm?

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To find the number of shares that will be outstanding in the merged firm w... View the full answer