Firm B is being acquired by Firm A for $162,000 worth of Firm A stock.The incremental value of the acquisition is $4,600.Firm A has 8,500 shares of stock outstanding at a price of $36 a share.Firm B has 5,900 shares of stock outstanding at a price of $27 a share.What is the value per share of Firm A after the acquisition?
A)$35.28
B)$35.71
C)$36.00
D)$36.15
E)$37.04

Question

Quizplus · Accepted Answer

Value per share = [(8,500 × $36) + (5,900 × $27) + $4,600]/[8,500 + ($162,000/$36)] = $36.15

Firm B Is Being Acquired by Firm a for $162,000