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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

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 A Firm B Number of shares Price per share Debt 40000 $18.00 $0 12000 $31.00 $0 What is the true cost of the acquisition of firm B by firm A in an all-stock deal?

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