Answer:
$57,100
Explanation:
Aardvak enterprises has agreed to be exchanged by Lawson's products
The exchange is $23,000 worth of Lawson's product stock
Lawson's has an 1,300 shares as outstanding at a price of $15 per share
Aardvak has 1,900 shares outstanding with a market value of $18 per share
The incremental value of the acquisition is $3,400
Therefore, the value of Lawson's product after the merger can be calculated as follows
= (1,300 × $15) + (1,900×$18 )+ $3,400
= $19,500+$34,200+$3,400
= $57,100
Hence the value of Lawson's product after the merger is $57,100
