Rosie's has 1,800 shares outstanding at a market price per share of $23.50. Sandy's has 2,500 shares outstanding at a market price

Rosie's has 1,800 shares outstanding at a market price per share of $23.50. Sandy's has 2,500 shares outstanding at a market price of $21 a share. Neither firm has any debt. Sandy's is acquiring Rosie's. The incremental value of the acquisition is $1,200. What is the value of Rosie's to Sandy's?    A.  $41,100 B.  $41,900 C.  $42,300 D.  $42,700 E.  $43,500 Value of Rosie's to Sandy's = (1,800 × $23.50) + $1,200 = $43,500

60.

The Town Crier and The News Express are all-equity firms. The Town Crier has 11,500 shares outstanding at a market price of $26 a share. The News Express has 15,000 shares outstanding at a price of $31 a share. The News Express is acquiring The Town Crier. The incremental value of the acquisition is $4,500. What is the value of The Town Crier to The News Express?    A.  $57,500 B.  $75,000 C.  $87,000 D.  $299,000 E.  $303,500 Value of The Town Crier to The News Express = (11,500 × $26) + $4,500 = $303,500

61.

The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 2,500 shares outstanding at a market price of $16.50 a share. Maggie's Flowers has 5,000 shares outstanding at a price of $17 a share. Maggie's Flowers is acquiring The Floral Shoppe for $42,900 in cash. The incremental value of the acquisition is $1,200. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?    A.  -$450 B.  $275 C.  $500 D.  $2,400 E.  $3,700 NPV = (2,500 × $16.50) + $1,200 - $42,900 = -$450

62.

Taylor's Hardware is acquiring The Corner Store for $25,000 in cash. Taylor's has 1,500 shares of stock outstanding at a market value of $46 a share. The Corner Store has 2,200 shares of stock outstanding at a market price of $8 a share. Neither firm has any debt. The incremental value of the acquisition is $3,500. What is the value of Taylor's Hardware after the acquisition?    A.  $49,000 B.  $50,300 C.  $57,300 D.  $65,100 E.  $72,400 Post-acquisition value of Taylor's = (1,500 × $46) + (2,200 × $8) + $3,500 - $25,000 = $65,100

63.

Firm A is acquiring Firm B for $75,000 in cash. Firm A has 4,500 shares of stock outstanding at a market value of $27 a share. Firm B has 2,500 shares of stock outstanding at a market price of $29 a share. Neither firm has any debt. The incremental value of the acquisition is $2,200. What is the price per share of Firm A's stock after the acquisition?    A.  $25.98 B.  $26.45 C.  $26.93 D.  $27.00 E.  $27.33 Price per share of A = [(4,500 × $27) + (2,500 × $29) + $2,200 - $75,000]/4,500 = $26.93