Global Network has a market value of $713,000.AG Communications has 46,700 shares of stock outstanding at a price per share of $56.AG is acquiring Global in an exchange for 13,500 shares of AG stock.The merger is expected to create $28,000 of synergy.What will be the postmerger value of the firm?
A)$3,218,100
B)$3,482,800
C)$3,356,200
D)$3,220,000
E)$3,298,000

Question

Quizplus · Accepted Answer

V_AB = $713,000 + (46,700 × $56)+ $28,000 = $3,356,200

Global Network Has a Market Value of $713,000