Neither acquiring ﬁrm A nor target ﬁrm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What is the price per share of the merged ﬁrm after the acquisition is completed?
A) $50.00
B) $52.30
C) $56.46
D) $58.76
E) $61.24

Question

Neither acquiring ﬁrm A nor target ﬁrm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.  What is the price per share of the merged ﬁrm after the acquisition is completed?
A) $50.00 
B) $52.30 
C) $56.46 
D) $58.76 
E) $61.24

Quizplus · Accepted Answer

The Answer of Neither acquiring ﬁrm A nor target ﬁrm B has any debt. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash.  What is the price per share of the merged ﬁrm after the acquisition is completed?
A) $50.00 
B) $52.30 
C) $56.46 
D) $58.76 
E) $61.24

Neither Acquiring ﬁRm a nor Target ﬁRm B Has Any