Question
firm b is willing to be acquired by firm at a price of 34 a share in either cash or stock. The incremental value of
firm b is willing to be acquired by firm at a price of 34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated to be at 80,000
firmA firm B
No. of shares 40,000 12,000
price per share $18.00 $31.00
debt 0 0
what is the value of firm B to firm A?
answer is 452,000. Please explain how
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
11th Edition
012819782X, 978-0128197820
