Question: Nets & Flicks would like to take over Jeff & Bezos. Both companies are debt-free. For that, Nets & Flicks is offering to Jeff &
Nets \& Flicks would like to take over Jeff \& Bezos. Both companies are debt-free. For that, Nets \& Flicks is offering to Jeff \& Bezos cash and cash-like equivalents in the total amount of $73,000. Nets \& Flicks currently has a total of 1,750 shares, and the market value of each share is $20. Jeff \& Bezos, on the other hand, currently has a total of 2,500 shares, and the market value of each share is $28. The merger of these two companies would have a $5,000 incremental value if it is successful. The net present value of the merger from the point of view of Nets \& Flicks equals Multiple Choice $3,000 $4,000 $2,000 $5,000 $6,000
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