Merchantile Exchange Is Being Acquired by National Sales

question 42

Multiple Choice

Merchantile Exchange is being acquired by National Sales.The incremental value of the acquisition is $1,800.Merchantile Exchange has 1,500 shares of stock outstanding at a price of $18 a share.National Sales has 3,500 shares of stock outstanding at a price of $54 a share.What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $28,780?

• A)$8
• B)$11
• C)$20
• D)$37
• E)$46

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Definitions:

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Internal Consistency

The degree to which items in a psychological test measure the same construct, indicating the reliability of the test.

Achievement Motivation

The driving force behind striving to succeed or meet standards of excellence.

Statistical Analysis

The process of collecting, analyzing, interpreting, and presenting data to uncover underlying patterns and trends.