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What Is the Cost of Acquiring a If the V

Question 21

Multiple Choice

What is the cost of acquiring A if the V and A merge? V is worth $450 and has 100 shares outstanding.A has a market value of $375 and has 40 shares outstanding.V to acquire A will swap 80 shares of V for the 40 shares of A. V believes the combination of VA was worth $925.


A) $325
B) $100
C) $36
D) $0

Correct Answer:

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