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Assume that you want to evaluate the outcome of an acquisition in the hemp industry. Firm A has a value of $50 million, and Firm
Assume that you want to evaluate the outcome of an acquisition in the hemp industry. Firm A has a value of $50 million, and Firm B has a value of $20 million. Combining the two would enable cost savings with a present value of $15 million. Firm A will pay shareholders of Firm B $25 million as part of the acquisition deal. How much do Firm A's shareholders gain from this acquisition?
a) $15 million
b) $10 million
c) $5 million
d) $0 million.
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