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Suppose You Have the Following Information Concerning an Acquiring fiRm

Question 134

Multiple Choice

Suppose you have the following information concerning an acquiring firm (A) and a target firm (B) . Neither firm has any debt. The incremental value of the acquisition is estimated to be $250,000.
Firm B is willing to be acquired for $540,000 worth of Firm A's stock. Suppose you have the following information concerning an acquiring firm (A) and a target firm (B) . Neither firm has any debt. The incremental value of the acquisition is estimated to be $250,000. Firm B is willing to be acquired for $540,000 worth of Firm A's stock. What is the price per share of the existing firm after the acquisition is completed? A) $50.00 B) $51.89 C) $52.46 D) $54.76 E) $55.24 What is the price per share of the existing firm after the acquisition is completed?


A) $50.00
B) $51.89
C) $52.46
D) $54.76
E) $55.24

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