Firm B Is Being Acquired by Firm a for $162,000

question 62

Multiple Choice

Firm B is being acquired by Firm A for $162,000 worth of Firm A stock.The incremental value of the acquisition is $4,600.Firm A has 8,500 shares of stock outstanding at a price of $36 a share.Firm B has 5,900 shares of stock outstanding at a price of $27 a share.What is the value per share of Firm A after the acquisition?

• A)$35.28
• B)$35.71
• C)$36.00
• D)$36.15
• E)$37.04

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Definitions:

Process Further

The action or decision to continue the production or refinement of a product beyond the initial stages to improve its value or quality.

Profit Difference

The variance between the estimated profit and the actual profit realized, indicating effectiveness of financial management and operations.

Weight Allocation

Weight allocation refers to the method of assigning proportions of a total, such as costs or resources, based on the relative weight or importance of various components or activities.

Physical Units Method

An inventory costing method that allocates costs based on the actual physical units of goods available for sale or use.