Question
LTL has 9,000 shares of stock outstanding at a market price per share of $21. STS has 45,000 shares outstanding that sell for $39 a
LTL has 9,000 shares of stock outstanding at a market price per share of $21. STS has 45,000 shares outstanding that sell for $39 a share. By merging, $15,200 of synergy can be created. What would be the postmerger value of the combined firm if STS acquires LTL in a stock acquisition valued at $200,000?
multiple choice
- $1,766,500
- $1,744,000
- $1,944,000
- $1,759,200
- $1,959,200
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
