New Tech Has a Market Value of $452,000

question 41

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

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or categorized to observe their impact on dependent variables.

Observations

Data points or recorded measures of variables obtained during an experiment or survey.

SSE

The sum of squares due to error, a measure of the discrepancy between the data and an estimation model.

Coefficient Of Determination

A statistical measure, often denoted as R², indicating the proportion of the variance in the dependent variable that is predictable from the independent variable(s).