Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. A company is acquiring B for $30,000 in cash. Company A has 2,500 shares of stock outstanding at a market value of $36 a

image text in transcribed
2. A company is acquiring B for $30,000 in cash. Company A has 2,500 shares of stock outstanding at a market value of $36 a share. The B Company has 2,700 shares of stock outstanding at a market price of $9 a share. Neither firm has any debt. The incremental value of the acquisition is $53,500. What is the price per share of Company A after the acquisition? 9:45 AM

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Applications and Theory

Authors: Marcia Cornett, Troy Adair

3rd edition

1259252221, 007786168X, 9781259252228, 978-0077861681

More Books

Students also viewed these Finance questions