Question
Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with
Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?
| A. | $30 million | |
| B. | $20 million | |
| C. | $15 million | |
| D. | $10 million |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
11th Edition
1032241829, 978-1032241821
