George's Equipment Is Planning on Merging with Nelson Machinery

question 57

Multiple Choice

George's Equipment is planning on merging with Nelson Machinery.George's will pay Nelson's shareholders the current value of their stock in shares of George's Equipment.George's currently has 4,600 shares of stock outstanding at a market price of $31 a share.Nelson's has 1,600 shares outstanding at a price of $38 a share.What is the value per share of the merged firm?

• A)$30.77
• B)$31.00
• C)$31.29
• D)$31.74
• E)$32.06

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Definitions:

Horror

A genre of fiction designed to evoke feelings of fear, dread, or horror in the audience.

Retro

A style, design, or fashion that draws inspiration from and evokes trends, music, modes, or attitudes of the past.

Milieu

The physical or social setting in which something occurs or develops; environment.

Plot Placement

A marketing strategy where advertisers integrate their products into the storyline of movies, TV shows, or other narratives to promote the product in a subtle, non-disruptive way.