Question
Firm Q is being acquired by Firm S for $30,000 worth of Firm S stock. The incremental value of the acquisition is $2,000. Firm Q
Firm Q is being acquired by Firm S for $30,000 worth of Firm S stock. The incremental value of the acquisition is $2,000. Firm Q has 1,900 shares of stock outstanding at a price of $15 a share. Firm S has 1,500 shares of stock outstanding at a price of $40 a share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $30,167?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
