Question $29$

Firm $A$ is being acquired by Firm $B.$ The incremental value of the acquisition is $$2,000.$ Firm

A has $1,800$ shares of stock outstanding at a price of $$24$ per share. Firm $B$ has $4,800$

shares of stock outstanding at a price of $$34$ per share. What is the net present value of the

acquisition given that the actual cost of the acquisition using company stock is $$30,800?$

$$987$

$$10,011$

$$12,920$

$$14,400$

$$18,046$