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Firm A is valued at $200 million and firm B is valued at $120 million. Combining the two would result in a cost savings of

  1. Firm A is valued at $200 million and firm B is valued at $120 million. Combining the two would result in a cost savings of $30 million today. Firm A buys B for $130 million. 

  2. How much do the shareholders of firm A earn from this merger?

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