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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 |
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