Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the gain from the merger.

Firm A has proposed to acquire Firm B at a price of $20 per share for

1.	Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the gain from the merger.
A.	$600
B.	$150
C.	$550
D.	$700
Answer» B. $150

Discussion

No Comment Found

Related MCQs

Compensation paid to top management in the event of a takeover is called a:
As a defensive maneuver, a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover. These bonds are an example of:
A modification of the corporate charter that requires 80% shareholder approval for takeover is called a(n):
An example of a shark-repellent charter amendment is: (I) Supermajority (II) Waiting period (III) Poison pill (IV) Staggered board
A dissident group solicits votes in an attempt to replace existing management. This is called a:
Which of the following factors influence the choice between merger and an acquisition of stock? (I) Shareholders are dealt with directly to bypass target management and board of directors (II) In a tender offer, usually some minority shareholders do not tender stopping complete firm absorption (III) Target management may be unfriendly and resist an offer. Resistance usually makes the stock price higher
What are the tax consequences of a taxable merger?
Suppose that the merger really does increase the value of the combined firms by $20,000 (i.e., PVAB PVA PVB = $20,000). What is the cost of the merger?
Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the gain from the merger.
The PEN Corporation with a book value of $20 million and a market value of $30 million has merged with the CNC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase then the total assets on the books of the new company will be:

Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. Calculate the gain from the merger.

Discussion

No Comment Found

Related MCQs

Reply to Comment