Question
Firm A (Acquiring Firm) Firm B (Target Firm) Price per share $40.00 $20.00 Number of shares 200 shares 100 shares Total market value $8,000 $2,000
|
| Firm A (Acquiring Firm) | Firm B (Target Firm) |
| Price per share | $40.00 | $20.00 |
| Number of shares | 200 shares | 100 shares |
| Total market value | $8,000 | $2,000 |
If Firm A were to pay cash for Firm B, what is the value of Firm B to firm A if the gain from acquisition is $1,000 and Firm B has agreed to sell at $2,550? Should firm A acquire Firm B?
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Lab Manual To Accompany Auditing IT Infrastructure For Compliance Version 2
Authors: Martin Weiss
2nd Edition
1284059189, 978-1284059182
