How much do firm shareholders gain from this merger

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Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. How much do firm A's shareholders gain from this merger?

A. $30 million

B. $20 million

C. $15 million

D. $10 million

2. A company buys a new $900,000 machine for its factory. In the first year of depreciation how much of the cost of the machine will be depreciated (in dollars) if this is a five-year MACRS asset?

a) $600,000

b) $180,000

c) $160,000

d) $120,000

Reference no: EM131878578

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