Sleep Tight Is Acquiring Restful Inns for $52,500 in Cash

question 16

Multiple Choice

Sleep Tight is acquiring Restful Inns for $52,500 in cash. Sleep Tight has 3,000 shares of stock outstanding at a market price of $38 a share. Restful Inns has 2,100 shares of stock outstanding at a market price of $24 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the price per share of Sleep Tight after the acquisition?

• A) $36.92
• B) $37.30
• C) $37.87
• D) $39.19
• E) $39.29

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Definitions:

Environmental Marketing

A marketing approach that emphasizes sustainability and the minimization of negative environmental impact through its products, services, and operations.

Recycling

The process of collecting, processing, and converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.

Cause Marketing

A partnership between a for-profit company and a nonprofit organization to mutually promote and benefit from social or charitable causes.

Cause Marketing

A strategy where businesses align with social issues or causes to increase brand awareness while also contributing to a social cause.