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LTL Has 9,000 Shares of Stock Outstanding at a Market

Question 26

Multiple Choice

LTL has 9,000 shares of stock outstanding at a market price per share of $21.STS has 45,000 shares outstanding that sell for $39 a share.By merging,$15,200 of synergy can be created.What would be the postmerger value of the combined firm if STS acquires LTL in a stock acquisition valued at $200,000?


A) $1,744,000
B) $1,759,200
C) $1,944,000
D) $1,766,500
E) $1,959,200

Correct Answer:

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