Assume that Smith Corp. acquires Jones Corp. in a business combination. On its balance sheet, Jones has an investment in the common stock of ABC Company, a publicly traded company that is listed on the New York Stock Exchange (NYSE) and London Stock Exchange as follows:

Exchange Price Transaction Costs Net

NYSE $38 $5 $33

London $40 $6 $34

What is the fair value of the common stock of ABC if the principal market is neither the NYSE nor London?

Choices:

$40

$38

$34

$33