In case of an M&A between firm A and firm B. If the value of firm A=50M, firm B=40M, the expected synergies S=45 and the integration/adaptation cost AC=15. The expected net value generated by the M&A= 45 b. The expected total value of the new firm created after the M&A= 120 c. The expected net value of the new firm created after the M&A= 90 d. None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4. In case of an M&A between firm A and firm B. If the value of firm A=50M, firm B=40M, the expected synergies S=45 and
the integration/adaptation cost AC=15.
a. The expected net value generated by the M&A= 45
b. The expected total value of the new firm created after the M&A= 120
c. The expected net value of the new firm created after the M&A= 90
d. None of the above
Transcribed Image Text:4. In case of an M&A between firm A and firm B. If the value of firm A=50M, firm B=40M, the expected synergies S=45 and the integration/adaptation cost AC=15. a. The expected net value generated by the M&A= 45 b. The expected total value of the new firm created after the M&A= 120 c. The expected net value of the new firm created after the M&A= 90 d. None of the above
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