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Outdoor Living Has Agreed to Be Acquired by New Adventures

Question 70

Multiple Choice

Outdoor Living has agreed to be acquired by New Adventures for $48,000 worth of New Adventures stock.New Adventures currently has 8,000 shares of stock outstanding at a price of $32 a share.Outdoor Living has 1,700 shares outstanding at a price of $43 a share.The incremental value of the acquisition is $21,000.What is the value of the merged firm?


A) $85,500
B) $256,000
C) $277,000
D) $320,500
E) $350,100

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