Rosie's Has 1,800 Shares Outstanding at a Market Price Per

question 75

Multiple Choice

Rosie's has 1,800 shares outstanding at a market price per share of $23.50.Sandy's has 2,500 shares outstanding at a market price of $21 a share.Neither firm has any debt.Sandy's is acquiring Rosie's.The incremental value of the acquisition is $1,200.What is the value of Rosie's to Sandy's?

• A)$41,100
• B)$41,900
• C)$42,300
• D)$42,700
• E)$43,500

---

Definitions:

Hambrick And Fukutomi

Scholars known for their contributions to the field of strategic management, particularly in the context of the upper echelons theory which suggests that organizational outcomes are partly influenced by the backgrounds of its top executives.

Wild Turkey

A brand of bourbon whiskey distilled in Kentucky, known for its rich flavor and history in American distilled spirits.

Positive Force

An influence or energy that contributes to positive outcomes or encourages improvement and growth.

Embellished Heroic

Enriching or enhancing stories of heroes or heroic acts with fictional or exaggerated details.