Racing Motors Has a Market Value of $187,000

Multiple Choice

Racing Motors has a market value of $187,000.PJ Racing has 22,500 shares of stock outstanding at a price per share of $43.PJ Racing is acquiring Racing Motors in an exchange for 4,350 shares of PJ Racing stock.The merger is expected to create $21,000 of synergy.The postmerger value of the firm will be ________ and the postmerger price per share will be ________.

A) $1,215,000; $43.78
B) $1,865,500; $44.06
C) $1,240,000; $42.89
D) $1,040,000; $44.06
E) $1,175,500; $43.78