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Cassandra's has 6,100 shares outstanding at a market price per share of $24. Adrian's has 3,500 shares outstanding at a market price of $56 a
Cassandra's has 6,100 shares outstanding at a market price per share of $24. Adrian's has 3,500 shares outstanding at a market price of $56 a share. Neither firm has any debt. Adrian's is acquiring Cassandra's for $155,000 in cash. The incremental cash flow generated by the acquisition is $2,250 each year forever. The discount rate is 10%. What is the value of Cassandra's to Adrian's? Group of answer choices
$158,200
$132,500
$155,000
$146,400
$168,900
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