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?

Suppose that the merger really does increase the value of the combined

1.	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?
A.	Zero
B.	$2,000
C.	$8,000
D.	$4,000
Answer» E.

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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?

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