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Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B

Neither acquiring firm A nor target firm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.

What is the NPV for acquiring firm B?

FIRM A FIRM B

Number of shares 50000 18000

Price per share $50 $22.50

how to get $115,000 as an answer

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