Taylor's Hardware Is Acquiring the Corner Store for $25,000 in Cash.Taylor's

question 65

Multiple Choice

Taylor's Hardware is acquiring The Corner Store for $25,000 in cash.Taylor's has 1,500 shares of stock outstanding at a market value of $46 a share.The Corner Store has 2,200 shares of stock outstanding at a market price of $8 a share.Neither firm has any debt.The incremental value of the acquisition is $3,500.What is the value of Taylor's Hardware after the acquisition?

• A)$49,000
• B)$50,300
• C)$57,300
• D)$65,100
• E)$72,400

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Definitions:

Natural Justice

The principle that ensures fair treatment in legal and administrative decisions, including the right to a fair hearing and the rule against bias.

Successful Negotiation

The process of reaching a mutually beneficial agreement through discussion and compromise.

Business Relationship

A connection between two or more parties engaged in commercial transactions or activities.

Negotiation

The process of discussing and arriving at a mutual agreement between parties with the intent to reach a settlement or resolve differences.