Jackson & Jackson (J&J) has agreed to be acquired by Nelson's Radiology for $625,000 worth of Nelson's stock. Nelson's currently has 25,800 shares of stock outstanding at a price of $67 a share. J&J has 11,400 shares outstanding at a price of $54. The incremental value of the acquisition is $21,000. What is the value of J&J to Nelson's?

Question

Quizplus · Accepted Answer

The value of J&J to Nelson's is the agreed acquisition price plus the incremental value of the acquisition. Therefore, it's $625,000 + $21,000 = $646,000. However, there seems to be a mistake in my calculation or the options provided. Based on the given choices, the closest to the correct calculation is $646,000, but this option is not listed. Given the options, the explanation points towards a calculation error or misunderstanding in the provided choices. The correct approach to find the value of J&J to Nelson's involves adding the acquisition price to the incremental value.

Jackson & Jackson (J&J) Has Agreed to Be Acquired by Nelson's