Firm A is planning on merging with Firm B.Firm A will pay Firm B's equityholders the current value of their equity in shares of FirmA.Firm A currently has 2,300 shares of equity outstanding at a
Market price of £20 a share.Firm B has 1,800 shares outstanding at a price of £15 a share.What is
The value per share of the merged firm?
A) £19.00
B) £19.18
C) £19.44
D) £20.00
E) £20.33
Correct Answer:
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