How much do firm as shareholders gain from this merger

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Reference no: EM13885368

Firm A has a value of $100 million and Firm B has a value of $60 million. Merging the two would enable cost savings with a present value of $20 million. Firm A purchases Firm B for $65 million. How much do Firm A's shareholders gain from this merger?

Reference no: EM13885368

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