1. Firm A has a total market value of *54 crore divided into 36 lakh shares of...
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1. Firm A has a total market value of *54 crore divided into 36 lakh shares of *150 market value per share. Firm B has a total market value of 9 crore divided into 15 lakh shares of 60 market value per share. Firm A is considering the acquisition of Firm B. The value of A after merger is expected to be 75 crore due to the operating efficiencies. Firm A is required to pay 15 crore to acquire Firm B. What is the net economic advantage to Firm A if it acquires Firm B?
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