Discount Motor Parts has agreed to merge with Automotive, Inc. for $275,000 worth of Automotive stock. Automotive has 32,000 shares of stock outstanding at a price of $27.40 a share. Discount
Has 14,500 shares outstanding with a market value of $18.78 a share. The incremental value of the
Acquisition is $2,100. What is the value of Automotive, Inc., after the merger?
A) $876,210
B) $876,800
C) $878,900
D) $1,050,990
E) $1,151,210

Question

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The Answer of Discount Motor Parts has agreed to merge with Automotive, Inc. for $275,000 worth of Automotive stock. Automotive has 32,000 shares of stock outstanding at a price of $27.40 a share. Discount
Has 14,500 shares outstanding with a market value of $18.78 a share. The incremental value of the
Acquisition is $2,100. What is the value of Automotive, Inc., after the merger?
A) $876,210
B) $876,800
C) $878,900
D) $1,050,990
E) $1,151,210

Discount Motor Parts Has Agreed to Merge with Automotive, Inc