Carlisle's Market Has a Market Value of $429,000 While Food

question 28

Multiple Choice

Carlisle's Market has a market value of $429,000 while Food World's market value is $191,000.Carlisle's just acquired Food World for $200,000 cash.What is the net present value of the acquisition if the merger creates $28,000 of synergy from cost efficiencies?

• A)$19,000
• B)$17,000
• C)-$9,000
• D)$37,000
• E)$219,000

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Definitions:

Extraembryonic Membrane

A set of tissues outside the embryo that provide support and nourishment in the early stages of development.

Shock Absorber

A mechanical device designed to smooth out or dampen shock impulse, and absorb kinetic energy.

Dizygotic Twins

Twins that arise from the separate fertilization of two eggs; commonly known as fraternal twins. Compare with monozygotic twins.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, resulting in siblings that are genetically distinct.