Firm B is willing to be acquired by firm A at a price of $14 a share in either cash or proposed acquisition is estimated at $280,000. Firm A Firm B Number of shares 50000 80000 Price per share $18.00 $15.00 Debt $0 $0

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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34) can you please help with this question? 

Firm B is willing to be acquired by firm A at a price of $14 a share in either cash or stock. The incremental value of the
proposed acquisition is estimated at $280,000.
Firm A
Firm B
Number of shares 5000O
80000
Price per share
$18.00
$15.00
Debt
$0
$0
What is the value of firm B to firm A? (Omit $ sign in your response. if your answer is $12345.67, enter
12345.67)
Numeric Response
Transcribed Image Text:Firm B is willing to be acquired by firm A at a price of $14 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $280,000. Firm A Firm B Number of shares 5000O 80000 Price per share $18.00 $15.00 Debt $0 $0 What is the value of firm B to firm A? (Omit $ sign in your response. if your answer is $12345.67, enter 12345.67) Numeric Response
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