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lutik1710 [3]
3 years ago
9

Taylor's Hardware is acquiring The Corner Store for $50,000 in cash. Taylor's has 2,200 shares of stock outstanding at a market

value of $18 a share. The Corner Store has 1,300 shares of stock outstanding at a market price of $27 a share. Neither firm has any debt. The incremental value of the acquisition is $2,300. What is the value of Taylor's Hardware after the acquisition?
Business
1 answer:
Katena32 [7]3 years ago
7 0

Answer:

$27,000

Explanation:

Taylor share                              $39,600

(2,200 * 18)

Add: Corner share Acquired    $35,100

(1,300 * 27)  

Add: incremental value             $2,300

Less: Cash paid                         <u>$50,000</u>

Value of Taylor's Hardware     <u>$27,000</u>

after the acquisition

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