Taylor's Hardware Is Acquiring the Corner Store for $27,400 in Cash

question 12

Multiple Choice

Taylor's Hardware is acquiring The Corner Store for $27,400 in cash. Taylor's has 1,500 shares of stock outstanding at a market value of $44 a share. The Corner Store has 2,100 shares of stock outstanding at a market price of $12 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the value of Taylor's Hardware after the acquisition?

• A) $49,000
• B) $50,300
• C) $57,300
• D) $65,500
• E) $72,400

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Definitions:

Steamed Milk

Milk that has been heated and aerated with steam, typically used in coffee drinks like lattes and cappuccinos.

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, so there is no excess of supply over demand or vice versa.

Oranges

A citrus fruit that is typically round, orange in color, and contains a pulp divided into segments; widely consumed fresh or as juice.

Florida

Florida is a southeastern U.S. state known for its theme parks, beaches, and diverse wildlife.