Multiple Choice
Firm A is planning on merging with Firm B.Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A because no synergy will be created.Firm A currently has 3,000 shares of stock outstanding at a market price of $15 a share.Firm B has 1,000 shares outstanding at a price of $10 a share.What is the value of the merged firm?
A) $25,000
B) $45,000
C) $55,000
D) $60,000
E) $50,000
Correct Answer:
Verified
Correct Answer:
Verified
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