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Question 15 (3 points) Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares
Question 15 (3 points) Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has 200 shares outstanding worth $100 each. If A acquires B, then the resulting synergy will amount to $10,000. Suppose A offers to exchange every B's share for $130 in cash. What will be the total benefit for the existing shareholders of B? Your
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