Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vivo Corporation is acquiring Wizz Company for $2,945,000 in cash. Vivo has 200,000 shares of stock outstanding at a market value of $57.50 a share.

Vivo Corporation is acquiring Wizz Company for $2,945,000 in cash. Vivo has 200,000 shares of stock outstanding at a market value of $57.50 a share. Wizz has 70,000 shares of stock outstanding at a market price of $38.60 a share. Neither firm has any debt. The net present value of the acquisition is $181,000. What is the price per share of Vivo after the acquisition?

$61.37

$59.72

$60.93

$57.86

$58.41

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Modelling In Mathematical Finance

Authors: Jan Kallsen, Antonis Papapantoleon

1st Edition

3319458736, 978-3319458731

More Books

Students also viewed these Finance questions

Question

5. How would you describe your typical day at work?

Answered: 1 week ago

Question

7. What qualities do you see as necessary for your line of work?

Answered: 1 week ago