Firm A is considering a merger/acquisition with Firm B. Based on the following data, what...
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Firm A is considering a merger/acquisition with Firm B. Based on the following data, what is the maximum price per share Fim A would pay to acquire Firm Bin a tender offer? Firm A Market value of debt: $1 million Market value of equity: $6 million Number of shares: 0.1 million Estimated total firm value based on value-based management model if the merger takes place: 7.2 million Firm B: Market value of debt: $4 million Market value of equity: $6 million Number of shares: 0.4 million Estimated total firm value based on value-based management model if the merger takes place: 12.8 million Select one: O a. $21.6 O b. $22.5 O c. $19.3 O d. $20.9 O e. $18.5
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