Question
Firm A is acquiring Firm T for $22,500 in cash. Firm A has 2,300 shares of stock outstanding at a market value of $28.5 a
Firm A is acquiring Firm T for $22,500 in cash. Firm A has 2,300 shares of stock outstanding at a market value of $28.5 a share. Firm T has 1,200 shares of stock outstanding at a market price of $17 a share. Neither firm has any debt. The net present value of the acquisition is $2,100. What is the price per share of Firm A after the acquisition?
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Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
