Multiple Choice
Lucas Motors is considering the acquisition of TM Repair. Lucas has 43,000 shares outstanding at a market price of $32 a share. TM has 12,800 shares outstanding priced at $44 a share. The acquisition is expected to create $5,400 of synergy. What is the maximum amount of cash Lucas should pay for this acquisition?
A) $568,600
B) $1,376,000
C) $446,073
D) $563,200
E) $1,381,400
Correct Answer:
Verified
Correct Answer:
Verified
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