Outdoor Living has agreed to be acquired by New Adventures for $48,000 worth of New Adventures stock. New Adventures currently has 8,000 shares of stock outstanding at a price of $32 a share. Outdoor Living has 1,500 shares outstanding at a price of $43 a share. The incremental value of the acquisition is $21,000. What is the value of the merged firm?
A) $85,500
B) $256,000
C) $277,000
D) $320,500
E) $341,500
Correct Answer:
Verified
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