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Ferns and Plants are all-equity firms. Ferns' has 2,500 shares outstanding at a market price of $28 a share. Plants has 2,500 shares outstanding at
Ferns and Plants are all-equity firms. Ferns' has 2,500 shares outstanding at a market price of $28 a share. Plants has 2,500 shares outstanding at a price of $41 a share. Plants is acquiring Ferns for $72,000 in cash. The synergy of the acquisition is $3,500. What is the value of Ferns to Plants?
| $66,500 | |
| $70,000 | |
| $36,000 | |
| $73,500 | |
| $79,500 |
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