Multiple Choice
New Tech has a market value of $452,000.Emerson Electrics has 37,000 shares of stock outstanding at a price per share of $21.Emerson Electrics is acquiring New Tech in exchange for 21,500 shares of Emerson Electrics stock.The merger is expected to create $3,000 of synergy.What is the acquisition net present value?
A) −$790
B) $3,511
C) $2,503
D) $2,214
E) $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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