What is the value of firm ab

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Firm A currently has 40,000 shares of stock outstanding at a market price of $18 a share. Firm B has 12,000 shares outstanding at a price of $31 a share. Firm B is willing to be acquired by firm A at a price of $34 a share in exchange of A's stocks. The incremental value of the proposed acquisition is estimated at $80,000. What is the value of firm AB if the merger is an all stock deal?

Reference no: EM132691070

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