1. Neither acquiring firm A nor target firm B has any debt. Firm A has 50,000shares outstanding at a market price of $50 a share. Firm B has 20000 shares outstanding at a price of $22.5 a share. The incremental value of the proposed acquisition is estimated to be $250,000. Firm B is willing to be acquired for $30 per share in cash. What is the NPV for acquiring firm B?

1. -100,000
2. 160,00
3. 115,000
4. -160,00
5. 100,000

2. Wexford industries offers 60,000 shares of common stock to the public in an IPO.. the underwriters agree to pay $35 a share and to provide their services in a firm commitment underwriting. The offer price is set at $39. After completing their sales efforts the underwriters determine that they were able to sell a total of 48,700 aares. How much cash did Wexford Industries receive from their IPO?

1. 2,100,000
2. 1,704,500
3. 1,881,750
4. 2,340,000
5. 1,688,750