Firm A is acquiring Firm B for $37,000 in cash. Firm A has 3,400 shares of stock outstanding at a market value of $15 a share. Firm B has 2,200 shares of stock outstanding at a market price of $37
A share. Neither firm has any debt. The net present value of the acquisition is $2,100. What is the
Price per share of Firm A's stock after the acquisition?
A) $15.62
B) $16.07
C) $28.68
D) $34.18
E) $39.56
Correct Answer:
Verified
Q81: Winslow Co. has agreed to be acquired
Q82: DEF stockholders are paid the current market
Q83: Guido's and Elrod's are all-equity firms. Guido's
Q84: DEF stockholders are paid the current market
Q85: Both firms are 100% equity-financed. Firm A
Q87: Carsen's Centre, Inc. has $2.85 million in
Q88: Firm A is acquiring Firm B for
Q89: The fair market value of the fixed
Q90: Lefty's and Sonny's are all-equity firms. Lefty's
Q91: Winslow Co. has agreed to be acquired
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents