Business Homework Solutions
#140161
Net present value of the acquisition
Firm Q is being acquired by Firm S for $30,000 worth of Firm S stock. The incremental value of the acquisition is $2,000. Firm Q has 1,900 shares of stock outstanding at a price of $15 a share. Firm S has 1,500 shares of stock outstanding at a price of $40 a share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $30,167?
A. $167
B. $225
C. $333
D. $425
E. $433
What is this?
By OTA - Overall OTA Rating
Vineet Swarup, MBA - 4.9/5
Purchase Cost Now
$2.19 CAD (was ~$11.97)
Included in Download
- Plain text response
Why you can trust BrainMass.com
- Your Information is Secure
- Best Online Academic Help Service
- Students find real academic Success
- Price Per Share after Acquistion - Firm A is acquiring Firm B for $25,000 in cash. Firm A has 2,000 shares of stock outstanding at a market value of $21 a share. Firm B has 1,200 shares of stock outstanding at a market price of $17 a s ...
- 3. (Acquisition Costs of Trucks) - 3. (Acquisition Costs of Trucks) Alexei Urmanov Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2004. The t ...
- Shares, Common Stock, Treasury Stock - The corporate charter of Gordon Corporation allows the issuance of a maximum of 2,000,000 shares of $1 par value common stock. During its first three years of operation, Gordon issued 1,200,000 shares ...
- Management: What changes occur within a company when it is acquired? - What changes occur within a company when it is acquired.
- Creating synergy after a company merger - This solution provides the learner with an understanding on steps that can be utilized to create synergy between two companies after the acquisition of one by the other.
