New Tech Has a Market Value of $452,000

question 26

Multiple Choice

New Tech has a market value of $452,000.Emerson Electrics has 37,000 shares of stock outstanding at a price per share of $21.Emerson Electrics is acquiring New Tech in exchange for 21,500 shares of Emerson Electrics stock.The merger is expected to create $3,000 of synergy.What is the acquisition net present value?

• A)−$790
• B)$3,511
• C)$2,503
• D)$2,214
• E)$3,000