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 $180,000.
Firm A Firm B
Number of shares 50000 80000
Price per share $18.00 $15.00
Debt $0 $0
What is the value of firm B to firm A?
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Quantitative Corporate Finance
Authors: John B. Guerard Jr. Anureet Saxena, Mustafa Gultekin
2nd Edition
3030435466, 978-3030435462
