Solved

Firm X Is Being Acquired by Firm Y for $35,000

Question 80

Multiple Choice

Firm X is being acquired by Firm Y for $35,000 cash which is being provided by retained earnings.The synergy of the acquisition is $5,000.Firm X has 2,000 shares of stock outstanding at a price of $16 a share.Firm Y has 10,200 shares of stock outstanding at a price of $46 a share.What is the value of Firm Y after the acquisition?


A) $534,750
B) $471,200
C) $435,000
D) $468,900
E) $535,500

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents