Moore Industries has agreed to be acquired by Scott Enterprises for $22,000 worth of Scott Enterprises stock.Scott Enterprises currently has 7,500 shares of stock outstanding at a price of $28 a share.Moore Industries has 1,800 shares outstanding at a price of $12 a share.The incremental value of the acquisition is $1,100.What is the value per share of Scott Enterprises stock after the acquisition?
A)$27.52
B)$27.96
C)$28.08
D)$28.47
E)$31.03

Question

Quizplus · Accepted Answer

Value per share = [(7,500 × $28) + (1,800 × $12) + $1,100]/[7,500 + ($22,000/28)] = $28.08

Moore Industries Has Agreed to Be Acquired by Scott Enterprises