(Answered) Consider the following information for two all-equity firms

Finance

Consider the following information for two all-equity firms, A and B:

	Firm A	Firm B
Shares outstanding	2,000	6,000
Price per share	$ 40	$ 30

Firm A estimates that the value of the synergistic benefit from acquiring Firm B is $6,000. Firm B has indicated that it would accept a cash purchase offer of $35 per share. Should Firm A proceed?

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