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Dog Treats Has 7,500 Shares of Stock Outstanding at a Market

Question 35

Multiple Choice

Dog Treats has 7,500 shares of stock outstanding at a market price per share of $13.FIDO has 22,000 shares outstanding that sell for $26 a share.By merging,$12,600 of synergy can be created.What would be the postmerger value of the combined firm if FIDO pays $100,000 to acquire Dog Treats?


A) $569,500
B) $582,100
C) $556,100
D) $669,500
E) $682,100

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