QUESTION 20 ABC and XYZ are all-equity firms. ABC has 1,750 shares outstanding at a market price of $20 a share. XYZ has 2,500 shares outstanding at a price of $28 a share. XYZ is acquiring ABC for $36,000 in cash. The incremental value of the acquisition is $3,000. What is the net present value of acquiring ABC to XYZ? O A. $1,000 B. $2,000 O C. $3,000 O D. $4,000 O E. $5,000 QUESTION 22 Which of the following are reasons why a firm may want to divest itself of some of its assets? 1. To raise cash; II. To get rid of unprofitable operations; III. To get rid of some assets received in an acquisition; IV. To cash in on some profitable operations. A. I and II only B. I, II, and Ill only O C. I, III, and IV only D. II, III, and IV only O E. I, II, III, and IV