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Tropical Foods Just Paid $249,900 Cash to Acquire Southern Veggies

Question 25

Multiple Choice

Tropical Foods just paid $249,900 cash to acquire Southern Veggies.Prior to the acquisition,Southern Veggies had a firm value of $228,500 and Tropical Foods was valued at $796,000.The acquisition created $11,400 of synergy from cost efficiencies.What is the value of Southern Veggies to Tropical Foods?


A) $245,000
B) $261,300
C) $232,800
D) $229,000
E) $239,900

Correct Answer:

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