Moving has 7,400 shares of stock outstanding at a market price per share of $18. Discount Shipping has 36,000 shares outstanding that sell for $45 a share. By merging, $5,000 of synergy can be created. Discount Shipping is acquiring Value Moving for $135,000 worth of Discount Shipping stock. What is the postmerger value per share?

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
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Value Moving has 7,400 shares of stock outstanding at a market price per share of $18. Discount Shipping has 36,000 shares outstanding that sell for $45 a share. By merging, $5,000 of synergy can be created. Discount Shipping is acquiring Value Moving for $135,000 worth of Discount Shipping stock. What is the postmerger value per share?

 
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