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