Question
Firm B is willing to be acquired by firm A at a price of $14 a share in either cash or stock. The incremental value
Firm B is willing to be acquired by firm A at a price of $14 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000.
Firm A Firm B
Number of shares 50000 60000
Price per share $18.00 $12.00
Debt $0 $0
What is the value of firm B to firm A? (Omit $ sign in your response. if your answer is $12345.67, enter 12345.67)
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
