Firm a Is Being Acquired by Firm B for $38,000

question 258

Multiple Choice

Firm A is being acquired by Firm B for $38,000 worth of Firm B stock. The incremental value of the acquisition is $7,400. Firm A has 2,500 shares of stock outstanding at a price of $22 a share. Firm B
Has 7,400 shares of stock outstanding at a price of $48 a share. What is the value per share of Firm
B after the acquisition?

• A) $48.91
• B) $50.98
• C) $52.27
• D) $55.43
• E) $56.43

---

Definitions:

Telencephalon

The largest part of the brain, responsible for voluntary motor function, cognition, emotion, and sensory processing.

Cranial Nerve VII

Also known as the facial nerve, it controls the muscles of facial expression, convey taste sensations from the anterior two-thirds of the tongue, and supply the lacrimal and salivary glands.

Pons

The pons is a part of the brain located above the medulla and below the midbrain, playing a key role in the regulation of breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Cerebrum

The largest part of the brain, divided into two hemispheres, responsible for higher brain functions such as thought and action.