Firm A is acquiring Firm B for $95,000 in cash. Firm A has 6,200 shares of stock outstanding with a market value of $48.50 a share. Firm B has 2,500 shares of stock outstanding at a market price of
$35) 15 a share. Neither firm has any debt. The net present value of the acquisition is $4,680. What
Is the price per share of Firm A after the acquisition?
A) $48.50
B) $49.25
C) $57.13
D) $62.67
E) $63.82
Correct Answer:
Verified
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