Question
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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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
