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Dog Treats Has 6,500 Shares of Stock Outstanding at a Market

Question 4

Multiple Choice

Dog Treats has 6,500 shares of stock outstanding at a market price per share of $11.FIDO has 15,000 shares outstanding that sell for $18 a share.By merging,$9,600 of synergy can be created.What would be the post-merger value of the combined firm if FIDO pays $75,000 to acquire Dog Treats?


A) $341,500
B) $276,100
C) $156,100
D) $266,500
E) $351,100

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