1.Firm A is planning on merging with the Firm B. Firm A will pay Firm B’s stockholders the current value the of their stock plus one-half on the synergy, which is $120, in shares of firm A. Firm A currently has 4000 shares of stock outstanding at a market price of $21 a share. Firm B has shares outstanding at a price of $10 a share. What is the value of the merged firms? A.$96240 B.$88120 C.$96000 D.$84120 E.$9236
1.Firm A is planning on merging with the Firm B. Firm A will pay Firm B’s stockholders the current value the of their stock plus one-half on the synergy, which is $120, in shares of firm A. Firm A currently has 4000 shares of stock outstanding at a market price of $21 a share. Firm B has shares outstanding at a price of $10 a share. What is the value of the merged firms?
A.$96240 B.$88120 C.$96000 D.$84120 E.$92360
2.Which of the following not true regarding financial statement
A.Group financial statement be produced by each subsidiary as well as the parent entity
B.Profit must be separated between members of the parent company and that of minority interest
C.Minority interest share of equity represents that ‘part of a subsidiary’s equity not allocated to members of the parent company.
D.Group financial statements must be produced by the parent entity only.
E.None of the options provided.
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