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Tropical Foods Just Paid $245,000 Cash to Acquire Southern Veggies

Question 2

Multiple Choice

Tropical Foods just paid $245,000 cash to acquire Southern Veggies.Prior to the acquisition Southern Veggies had a firm value of $228,000 and Tropical Foods was valued at $980,000.The acquisition created $46,000 of synergy from cost efficiencies.What is the value of Southern Veggies to Tropical Foods?


A) $245,000
B) $291,000
C) $46,000
D) $29,000
E) $274,000

Correct Answer:

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