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6. Firm X is being acquired by Firm Y for 875 shares of Firm Y stock. The incremental cash flow of the acquisition is $300

6. Firm X is being acquired by Firm Y for 875 shares of Firm Y stock. The incremental cash flow of the acquisition is $300 indefinitely. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price of $40 a share. Assume that the appropriate discount rate is 10%. What is the actual cost of the acquisition using company stock

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