Suppose You Have the Following Information Concerning an Acquiring Firm

question 182

Multiple Choice

Suppose you have the following information concerning an acquiring firm (A) and a target firm (B) . Neither firm has any debt. The incremental value of the acquisition is estimated to be $250,000. Firm B is willing to be acquired for $540,000 worth of Firm A's stock. What is the price per share of the existing firm after the acquisition is completed?

• A) $50.00
• B) $51.89
• C) $52.46
• D) $54.76
• E) $55.24