Aardvark Enterprises has agreed to be acquired by Lawson Products in exchange for $30,000 worth of Lawson Products stock

Aardvark Enterprises has agreed to be acquired by Lawson Products in exchange for $30,000 worth of Lawson Products stock. Lawson has 3,000 shares of stock outstanding at a price of $28 a share. Aardvark has 1,100 shares outstanding with a market value of $23 a share. The incremental value of the acquisition is $1,400. What is the value of Lawson Products after the merger?    A.  $79,400 B.  $83,000 C.  $111,600 D.  $110,700 E.  $143,000 Value after merger = (3,000 × $28) + (1,100 × $23) + $1,400 = $110,700

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Hanover Tires is being acquired by Better Tires for $89,000 worth of Better Tires stock. Hanover Tires has 2,500 shares of stock outstanding at a price of $36 a share. Better Tires has 6,000 shares outstanding with a market value of $23 a share. The incremental value of the acquisition is $4,200. How many new shares of stock will be issued to complete this acquisition?    A.  2,472 shares B.  3,016 shares C.  3,133 shares D.  3,870 shares E.  3,987 shares Number of shares issued = $89,000/$23 = 3,870 shares

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Glendale Marine is being acquired by Inland Motors for $53,000 worth of Inland Motors stock. Inland Motors has 6,200 shares of stock outstanding at a price of $49 a share. Glendale Marine has 1,700 shares outstanding with a market value of $30 a share. The incremental value of the acquisition is $2,600. What is the total number of shares in the new firm?    A.  7,229 shares B.  7,282 shares C.  7,529 shares D.  7,852 shares E.  7,900 shares Total number of shares = 6,200 + ($53,000/$49) = 7,282 shares