Sleep Tight Is Acquiring Restful Inns for $52,500 in Cash

question 16

Multiple Choice

Sleep Tight is acquiring Restful Inns for $52,500 in cash. Sleep Tight has 3,000 shares of stock outstanding at a market price of $38 a share. Restful Inns has 2,100 shares of stock outstanding at a market price of $24 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the price per share of Sleep Tight after the acquisition?

• A) $36.92
• B) $37.30
• C) $37.87
• D) $39.19
• E) $39.29

---

Definitions:

Legal Detriment

A loss or disadvantage that occurs to one party in a contract, considered a necessary component for a valid contractual agreement.

UCC

Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Seal

A device used to impress or mark documents as a form of authentication or to signify agreement.

Charitable Pledges

Promises or commitments to donate a specific amount of money to a charity or for a philanthropic cause.