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The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,650 shares outstanding at a market price of $23 a share. Maggie's
The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,650 shares outstanding at a market price of $23 a share. Maggie's Flowers has 2,250 shares outstanding at a price of $29 a share. Maggie's Flowers is acquiring The Floral Shoppe for $34,000 in cash. The incremental value of the acquisition is $2,500. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?
$5,464
$8,422
$6,450
$7,436
$9,408
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