JLM Has 7,400 Shares of Stock Outstanding at a Market

question 15

Multiple Choice

JLM has 7,400 shares of stock outstanding at a market price per share of $18.Hi-Tek has 36,000 shares outstanding that sell for $45 a share.By merging,$5,000 of synergy can be created.Hi-Tek is acquiring JLM for $135,000 worth of Hi-Tek stock.What is the postmerger value per share?

• A)$45.00
• B)$46.57
• C)$45.08
• D)$44.92
• E)$44.83

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