Question
Your firm is currently valued at $500,000. The firm you are looking to acquire has a value of $200,000, has $25,000 shares of stock outstanding.
Your firm is currently valued at $500,000. The firm you are looking to acquire has a value of $200,000, has $25,000 shares of stock outstanding. In order to make this acquisition you plan to offer target shareholders $8.25 per share. The present value of synergies is $36,000. What is the value of the combined firm?(ASKED)
-$493,750
-$529,750
-$578,050
-$736,000
-$876,432
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 2
978-1119048541
