Shareholders in firm B are paid the market value of their firm in shares of stock from

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Shareholders in firm B are paid the market value of their firm in shares of stock from firm A. The earnings of the combined firm are $68,000. Information on each firm, prior to merger is as follows:

Firm A Firm B

Number of outstanding shares 30000 22000

Price per share $32.00 $25.00

Debt $0 $0

Total earnings $36,000.00 $30,000.00

What is the net present value of acquiring firm B in an all stock merger?

Related Book For answer-question

Modern Advanced Accounting in Canada

ISBN: 978-1259087554

7th edition

Authors: Hilton Murray, Herauf Darrell

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Posted Date: May 02, 2023 07:03 AM

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Shareholders in firm B are paid the market value of their firm in shares of stock from

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Modern Advanced Accounting in Canada

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