Question: Co A is contemplating to acquire Co B for Rs 50,000 in cash. Co A has 3500 sharesat a market price of Rs 18 a

Co A is contemplating to acquire Co B for Rs 50,000 in cash. Co A has 3500 sharesat a market price of Rs 18 a share. Co B has 3500 shares at market price of Rs 12 a share. Both companies are debt free. The net present value of acquisition benefit is Rs 3,500. What would be the expected value of New Co A?

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