Herbal Gardens has a market value of $380 while Veggies has a market value of $530. Veggies
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Question:
Herbal Gardens has a market value of $380 while Veggies has a market value of $530. Veggies is merging with Herbal Gardens and expects the combined firm to have a market value of $950. If the current Herbal Garden shareholders obtain $400 of equity in the new firm, how much synergy was allocated to the Veggies shareholders?
a. $0
b. $20
c. $25
d. $15
e.$40
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