Transcribed Image Text: Firm A and Firm B are all-equity firms. Firm A has 10,000 shares outstanding at a market price of $25 a share. Firm B has 7,500 shares

Transcribed Image Text: Firm A and Firm B are all-equity firms. Firm A has 10,000 shares outstanding at a
market price of $25 a share. Firm B has 7,500 shares outstanding at a price of $10 a
share. Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in
the form of either cash or stock. The synergy value of the deal is $14,500. will
the price per share be of the post-merger firm if payment is made in stock?
O $27.30
O $25.53
O $26.32
O $25.00
$25.38

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