What will be the value of firm shareholders stake

Reference no: EM131975488

Question: Firm A has a market value of $6,000 with 150 shares outstanding and a price per share of $40. Firm B has a market value of $800 with 40 shares outstanding and a price of $20. Firm A is acquiring Firm B by exchanging 25 of its shares for all 40 of Firm B's shares. Assume the merger creates $500 of synergy. What will be the value of Firm B's shareholders' stake in the merged firm?

Reference no: EM131975488

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