Ferns and Plants are all-equity firms. Ferns' has 2,500 shares outstanding at a market price of $28 a share. Plants has 2,500 shares outstanding at a price of $41 a share. Plants is acquiring Ferns for $72,000 in cash. The synergy of the acquisition is $3,500. What is the value of Ferns to Plants? $66,500 $70,000 $36,000 $73,500 $79,500
Ferns and Plants are all-equity firms. Ferns' has 2,500 shares outstanding at a market price of $28 a share. Plants has 2,500 shares outstanding at a price of $41 a share. Plants is acquiring Ferns for $72,000 in cash. The synergy of the acquisition is $3,500. What is the value of Ferns to Plants? $66,500 $70,000 $36,000 $73,500 $79,500
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ferns and Plants are all-equity firms. Ferns' has 2,500 shares outstanding at a market price of $28 a share. Plants has 2,500 shares outstanding at a price of $41 a share. Plants is acquiring Ferns for $72,000 in cash. The synergy of the acquisition is $3,500. What is the value of Ferns to Plants?
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$66,500 |
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$70,000 |
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$36,000 |
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$73,500 |
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$79,500 |
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