Rudy's,Inc

question 42

Multiple Choice

Rudy's,Inc. and Blackstone,Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Blackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $36,000 in cash. The incremental value of the acquisition is $3,500. What is the value of Rudy's Inc. to Blackstone?

• A) $30,000
• B) $32,500
• C) $33,000
• D) $36,500
• E) $39,500

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Definitions:

Preventive Care

Medical services and practices that focus on disease prevention and health maintenance rather than treatment of symptoms or conditions.

Portable

Capable of being easily carried or moved, especially in reference to electronic devices or equipment.