Delta is being acquired by Gamma. The incremental value of the acquisition is $1,600. Delta has 1,200 shares of stock outstanding at a price of $22 a share. Gamma has 3,100 shares of stock outstanding at a price of $50 a share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $27,575?
A) $289
B) $377
C) $407
D) $425
E) $436

Question

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The Answer of Delta is being acquired by Gamma. The incremental value of the acquisition is $1,600. Delta has 1,200 shares of stock outstanding at a price of $22 a share. Gamma has 3,100 shares of stock outstanding at a price of $50 a share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $27,575?
A) $289
B) $377
C) $407
D) $425
E) $436

Delta Is Being Acquired by Gamma