Question
Mars is acquiring Neptune for $768,000 in cash. Mars has 40,000 shares of stock outstanding at a market value of $38 a share. Neptune has
Mars is acquiring Neptune for $768,000 in cash. Mars has 40,000 shares of stock outstanding at a market value of $38 a share. Neptune has 22,000 shares of stock outstanding at a market price of $32 a share. Neither firm has any debt. The net present value of the acquisition is $96,000. What is the price per share of Mars after the acquisition?
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
