Davis Instruments is planning on merging with Weather Tech. Davis Instruments will pay Weather Tech shareholders the current value of their stock using shares of Davis Instruments as the form of payment. Davis Instruments has $8,900$ shares outstanding at a market price of $$13\mathrm{.}50$ per share. Weather Tech has $3,500$ shares outstanding at a market price of $$18\mathrm{.}75$ per share. The expected synergy created by the merger is $$3,500.$ What is the value of the merged firm $($excludes cost of acquisition$)?$

 

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1 Davis Instruments Calculation Number of shares outstanding 8900 shares Market price per share 1350 ... View the full answer