News Express has 26,200 shares outstanding at a market price of $33.30 a share. Nu-News has 15,000 shares outstanding at a price of $54 a share. The News Express is acquiring Nu-News. Both firms are all-equity financed. The incremental value of the acquisition is $2,500. What is the value of Nu-News to News Express?
A) $874,960
B) $804,960
C) $869,960
D) $807,500
E) $812,500
Correct Answer:
Verified
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