Question

In an unrelated acquisition, if 5
firms are interested in acquiring
a firm and each of the bidding
firms had a current market
value of $30,000 while the
current market value of the
target firm is $20,000, this
acquisition is likely to generate
economic profits of for
the acquiring firm
A) $10,000
B) $20,000
C) $50.000
D) $0.00

Its answer is option D but why?

Answer 1

Answer:

D)$0.00

Explanation:

The acquisition is described as a formal act or agreement in which one company purchases all or more than 50% of shares of another company to gain control. It is done to gain an advantage in the market or expand the business.

Answer and Explanation:

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The correct option is: D) $0.00

Explanation:

Given information,

Current market value of bidding firm is $ 30,000

Current market value of target...