Moving has 7,400 shares of stock outstanding at a market price per share of $18. Discount Shipping has 36,000 shares outstanding that sell for $45 a share. By merging, $5,000 of synergy can be created. Discount Shipping is acquiring Value Moving for $135,000 worth of Discount Shipping stock. What is the postmerger value per share?

Moving has 7,400 shares of stock outstanding at a market price per share of $18. Discount Shipping has 36,000 shares outstanding that sell for $45 a share. By merging, $5,000 of synergy can be created. Discount Shipping is acquiring Value Moving for $135,000 worth of Discount Shipping stock. What is the postmerger value per share?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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