Question
Bakery and Coffee Shop are allequity firms. Bakery has 3,780 shares outstanding at a market price of $29 a share. Coffee Shop has 6,112 shares
Bakery and Coffee Shop are allequity firms. Bakery has 3,780 shares outstanding at a market price of $29 a share. Coffee Shop has 6,112 shares outstanding at a price of $43 a share. Coffee Shop is acquiring the Bakery for $110,500 in cash. The incremental value of the acquisition is $2,769. What is the net present value of the acquisition?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
