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Company A has a pre-acquisition value of 600,000. Company B has a pre-acquisition value of 200,000. Company A acquiries Company B in a cash acquisition

Company A has a pre-acquisition value of 600,000. Company B has a pre-acquisition value of 200,000.

Company A acquiries Company B in a cash acquisition with a bid value of 300,000.

The benefits arising from the acquisition are valued at 400,000.

How much of these benefits will remain for Company A shareholders after the cost of the acquisition is deducted?

200,000

400,000

300,000

100,000

A car manufacturing company acquires a rival car manufacturing company. This is an example of a:

Horizontal acquisition

Vertical acquisition

Diagonal acquisition

Perpendicular acquisition

Apollo Plc has 100,000 shares on a stand-alone basis, each with a value of 5. Lunar Plc has 50,000 shares on a stand-alone basis, each with a value of 2.

Apollo decides to acquire Lunar in a cash acquisition. Benefits of 200,000 are expected to arise from the acquisition.

Based on the information above, what will be the post-acquisition value per share of the merged group?

5.33 per share

7 per share

8 per share

6 per share

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