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New Tech Has a Market Value of $384,000

Question 31

Multiple Choice

New Tech has a market value of $384,000.Emerson Electrics has 40,000 shares of stock outstanding at a price per share of $39.Emerson Electrics is acquiring New Tech in exchange for 10,000 shares of Emerson Electrics stock.The merger is expected to create $28,000 of synergy.What is the merger net present value?


A) -$81,000
B) -$10,400
C) $22,400
D) $17,600
E) $46,400

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