Question
Alpine Corporation is acquiring Beckshire Company for $302,000 in cash. Alpine has 15,000 shares of stock outstanding at a market value of $34 a share.
Alpine Corporation is acquiring Beckshire Company for $302,000 in cash. Alpine has 15,000 shares of stock outstanding at a market value of $34 a share. Berkshire has 12,000 shares of stock outstanding at a market price of $23 a share. Neither firm has any debt. The net present value of the acquisition is $51,000. What is the price per share of Alpine after the acquisition?
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Financial Accounting in an Economic Context
Authors: Jamie Pratt
10th edition
978-1-119-3061, 1119306167, 978-1119444367
