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Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value
Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. Firm B 12000 Number of shares Price per share $31.00 Debt $0 $0 How many shares of outstanding stock will firm AB have if the merger is a cash deal? A) 43,600 B) 52,000 C) 36,400 D) 40,000 E) 46,000 Firm A 40000 $18.00
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