Suppose You Have the Following Information Concerning an Acquiring fiRm

question 319

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

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Definitions:

Short-Term Goals

Objectives set to be achieved in a brief period, guiding immediate actions and strategies.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, focusing on future aspirations and strategic outcomes.

Frequent Feedback

The process of giving regular, prompt responses or assessments regarding performance, behavior, or learning, aimed at improvement and development.

Goal-Setting Theory

A motivational theory that suggests setting specific and challenging goals, along with appropriate feedback, enhances performance.