Rudy's and Blackstone are all-equity firms.Rudy's has 1,500 shares outstanding at a market price of £22 a share.Blackstone has 2,500 shares outstanding at a price of £38 a share.Blackstone is
Acquiring Rudy's for £36,000 in cash.The incremental value of the acquisition is £3,500.What is the
Value of Rudy's Inc.to Blackstone?
A) £30,000
B) £32,500
C) £33,000
D) £36,500
E) £39,500
Correct Answer:
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