Question: QUESTIONS Question 3(30 Points): a) Briefly explain the true (good) motives for mergers. Firm A Firm B Firm AB(after merger of A and B) Market

QUESTIONS Question 3(30 Points): a) Briefly explain the true (good) motives for mergers. Firm A Firm B Firm AB(after merger of A and B) Market price per share Number of shares Market value of the firm 20 1.000.000 10 500.000 30.000.000 b) If Firm A intends to pay $7 million cash for B, calculate the cost and NPV of this merger c) If Firm A offers 300,000 shares for B's shareholders, calculate the cost of merger Compare the NPV for this case with b. d) Give examples for mergers horizontal, vertical, or conglomerate mergers? You can just give hypothetical examples, too Please at the end of each action write the Ell

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