Taylor's Hardware is acquiring The Corner Store for $25,000 in cash.Taylor's has 1,500 shares of stock outstanding at a market value of $46 a share.The Corner Store has 2,200 shares of stock outstanding at a market price of $8 a share.Neither firm has any debt.The incremental value of the acquisition is $3,500.What is the value of Taylor's Hardware after the acquisition?
A)$49,000
B)$50,300
C)$57,300
D)$65,100
E)$72,400

Question

Quizplus · Accepted Answer

Post-acquisition value of Taylor's = (1,500 × $46) + (2,200 × $8) + $3,500 - $25,000 = $65,100

Taylor's Hardware Is Acquiring the Corner Store for $25,000 in Cash.Taylor's