Merchantile Exchange Is Being Acquired by National Sales

Multiple Choice

Merchantile Exchange is being acquired by National Sales.The incremental value of the acquisition is $1,800.Merchantile Exchange has 1,500 shares of stock outstanding at a price of $18 a share.National Sales has 3,500 shares of stock outstanding at a price of $54 a share.What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $28,780?

A) $8
B) $11
C) $20
D) $37
E) $46