Racing Motors Has a Market Value of $210,000

Multiple Choice

Racing Motors has a market value of $210,000.PJ Racing has 20,000 shares of stock outstanding at a price per share of $40.PJ Racing is acquiring Racing Motors in an exchange for 5,625 shares of PJ Racing stock.The merger is expected to create $30,000 of synergy.The post-merger value of the firm will be ____ and the post-merger price per share will be ____.

A) $815,000;$40.75
B) $815,000;$31.80
C) $1,040,000;$40.75
D) $1,040,000;$52.00
E) $1,040,000;$40.59