Winslow Co. has agreed to be acquired by Ferrier, Inc. for $25,000 worth of Ferrier stock. Ferrier currently has 1,500 shares of stock outstanding at a price of $21 a share. Winslow has 1,000 shares
Outstanding at a price of $22. The incremental value of the acquisition is $4,000. What is the
Merger premium per share?
A) $1
B) $2
C) $3
D) $4
E) $5
Correct Answer:
Verified
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