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mario62 [17]
3 years ago
6

Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present

value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?A. $30 millionB. $20 millionC. $15 millionD. $10 million
Business
1 answer:
aliina [53]3 years ago
3 0

Answer:

A's shareholder would gain = $20 million

Explanation:

Given:

Value of firm A = $200 million

Value of firm B = $120 million

Cost saving = $30 million

Computation:

Premium paid  = $130 million  - $120 million

Premium paid = $10 million

A's shareholder would gain = Cost saving - Premium paid

A's shareholder would gain = $30 million - $10 million

A's shareholder would gain = $20 million

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wisdom, and good speech

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Assume Maine Line Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge
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Answer:

$214,000

Explanation:

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R = \$14,000+\$1*n

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If there are 200,000 reservations for passengers taking a trip next month, the reservation cost is:

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4 years ago
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3 years ago
What is the price at which equilibrium is achieved?
nasty-shy [4]
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Although humans made stone tools for 200,000 years the most sophisticated form and last complete stone tool kit is the ________,
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Archaeologists frequently research these prehistoric societies, and the examination of stone tools is known as lithic analysis. To deepen our understanding of the cultural ramifications of stone tool use and production, ethnoarchaeology has been a useful research field.

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Learn more about stone tool

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