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An acquiring firm is willing to pay a 25 percent premium for a target firm's shares, currently selling at $20 per share. The target has one million shares outstanding, current assets of $5 million, fixed assets of $40 million, and liabilities of $20 million. The amount of goodwill involved in this transaction is: a. $0 b. $2,500,000 c. $5,000,000 d. $6,250,000 e. none of the above

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92172883

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