Multiple Choice
Sleep Tight is acquiring Restful Inns for $52,500 in cash. Sleep Tight has 3,000 shares of stock outstanding at a market price of $38 a share. Restful Inns has 2,100 shares of stock outstanding at a market price of $24 a share. Neither firm has any debt. The incremental value of the acquisition is $1,700. What is the price per share of Sleep Tight after the acquisition?
A) $36.92
B) $37.30
C) $37.87
D) $39.19
E) $39.29
Correct Answer:
Verified
Correct Answer:
Verified
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