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:
Verified
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