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Nu-Day Inc. has agreed to acquire Brite Industries for $20,000 worth of Nu-Day stock. Brite has 1,200 shares of stock outstanding at a price of
Nu-Day Inc. has agreed to acquire Brite Industries for $20,000 worth of Nu-Day stock. Brite has 1,200 shares of stock outstanding at a price of $15 a share. Nu-Day has 2,000 shares outstanding with a market value of $19 a share. The incremental value added by the acquisition is $3,500. What portion of the synergy did Nu-Days shareholders earn in the merger?
- $2,000
- $39,500
- $3,500
- $18,000
- $1,500
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