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Firm A is being acquired by Firm B. The incremental value of the acquisition is $2,000. Firm A has 1,800 shares of stock outstanding
Firm A is being acquired by Firm B. The incremental value of the acquisition is $2,000. Firm A has 1,800 shares of stock outstanding at a price of $24 per share. Firm B has 4,800 shares of stock outstanding at a price of $34 per share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $30,800? $987 $10,011 $12,920 $14,400 O $18,046
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