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The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,800 shares outstanding at a market price of $25 a share. Maggie's
The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,800 shares outstanding at a market price of $25 a share. Maggie's Flowers has 2,700 shares outstanding at a price of $33 a share. Maggie's Flowers is acquiring The Floral Shoppe for $35,000 in cash. The incremental value of the acquisition is $3,000. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?
$14,000
$15,000
$12,000
$16,000
$13,000
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