Shares should firm offer in exchange for firm

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Reference no: EM131926408

Firm A is planning on merging with Firm B. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 750 shares outstanding at a price of A share. The merger will create $200 of synergy. How many of its shares should Firm A offer in exchange for all of firm B’s share if it wants its acquisition cost to be $12,000?

Reference no: EM131926408

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