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Suppose that Firm A has 40 shares outstanding at a price per share of $25 while Firm B has 10 shares outstanding at a market

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Suppose that Firm A has 40 shares outstanding at a price per share of $25 while Firm B has 10 shares outstanding at a market price of $20. The value of Firm B to Firm A is $400(V8) while suppose Firm A wants to pay in stock to complete this merger transaction and the agreed upon sales price is $250. After the stock merger, there will be shares outstanding in Firm A while the new share price is Based on the above information, the net present value of the merger to firm A is 10:$28 per share: $120 50: \$28 per share; $150 50;$28 per share; $1,400 50: $28 per share; $120

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