Firm a Is Being Acquired by Firm B for $54,000

question 18

Multiple Choice

Firm A is being acquired by Firm B for $54,000 worth of Firm B stock.The incremental value of the acquisition is $5,600.Firm A has 2,400 shares of stock outstanding at a price of $19 a share.Firm B has 2,700 shares of stock outstanding at a price of $50 a share.What is the actual cost of the acquisition using company stock?

• A)$50,509
• B)$52,276
• C)$53,200
• D)$56,780
• E)$60,600

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Definitions:

Excitatory Postsynaptic Potential

An excitatory postsynaptic potential (EPSP) is a temporary increase in membrane potential in a postsynaptic neuron, making it more likely to fire an action potential, usually in response to neurotransmitter release.

Neuronal Membrane

The cell membrane surrounding a neuron, which controls the movement of substances in and out of the cell and facilitates electrical signaling.

Saltatory Conduction

Fast propagation of an action potential at successive nodes of Ranvier; saltatory means “leaping.”

Nodes Of Ranvier

Gaps in the myelin sheath around nerve fibers where the axon is exposed and action potentials are regenerated.