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Question 3 (3.5 points) Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their
Question 3 (3.5 points) Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 3,000 shares of stock outstanding at a market price of $15 a share. Firm B has 1,000 shares outstanding at a price of $10 a share. The two firms have no synergy. What is the value per share of the merged firm? $15.00 $20.50 o $10.00 o o $16.25 $20.00
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