Question: Stoddard Datsun Restorations ( SD ) is taking over Lick N'Stick ( LNS ) in a cash deal. SDR will pay $ 3 3 ,

Stoddard Datsun Restorations (SD) is taking over Lick N'Stick (LNS) in a cash deal. SDR will pay $33,000 for LNS. LNS is an all equity firm with 1,850 shares, currently trading at $18/share. SDR has 2,450 shares outstanding at a price of $27. SDR estimates synergies will be $3,000. What is the NP of the takeover from SDR's perspective? What will the share price of SDR be after the takeover?

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