Question 2 (Mandatory) (10 points)
Alpha Corporation has a market value of $650 while Gamma Corporation has a
market value of $1,100. The two firms are merging and expect the combined firm to
have a market value of $1,890. If the current Alpha shareholders obtain $750 of
equity in the new firm, how much synergy was allocated to the Gamma
shareholders?
$0
$20
$40
$15
$25