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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 A Firm B

Number of shares 40000 12000

Price per share $18.00 $31.00

Debt $0 $0

What is the value of firm B to firm A?

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