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The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,750 shares outstanding at a market price of $18 a share. Maggie's
The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,750 shares outstanding at a market price of $18 a share. Maggie's Flowers has 2,550 shares outstanding at a price of $25 a share. Maggie's Flowers is acquiring The Floral Shoppe for $39,000 in cash. The incremental value of the acquisition is $2,800. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?
$-1,700
$-3,700
$-2,700
$-5,700
$-4,700
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