Sue's Bakery Is Planning on Merging with Ted's Deli

question 56

Multiple Choice

Sue's Bakery is planning on merging with Ted's Deli.Sue's will pay Ted's shareholders the current value of their stock in shares of Sue's Bakery.Sue's currently has 4,500 shares of stock outstanding at a market price of $19 a share.Ted's has 2,300 shares outstanding at a price of $20 a share.What is the value of the merged firm?

• A)$106,500
• B)$107,800
• C)$125,400
• D)$131,500
• E)$131,600

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Definitions:

Developing Countries

Nations with a lower level of material well-being, industrialization, and economic development compared to developed countries.

Developed Countries

Nations with high levels of economic productivity, advanced infrastructure, and higher standards of living.

Technology

The application of scientific knowledge for practical purposes, especially in industry, which can significantly influence productivity and economic growth.

Capital

Wealth in the form of money or other assets owned or used by a person or organization for a particular purpose such as investment in productive projects.