Mergers and Acquisitions 1. The following data on a merger are given: Price per share...

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Mergers and Acquisitions 1. The following data on a merger are given: Price per share Total earnings Shares outstanding Total value Firm A $100 $500 100 $10,000 Firm B Firm AB $10 $300 40 $400 $11.000 Firm A has proposed to acquire Firm B's operation at a price of $20 per share of firm B. a) Calculate the gain from the merger. A. $600 B. $150 C. $550 D. $700 b) Calculate the NPVA of the merger. A. $200 B. $400 C. $600 D. $150

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