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Alpine Corporation is acquiring Beckshire Company for $302,000 in cash. Alpine has 15,000 shares of stock...

Alpine Corporation is acquiring Beckshire Company for $302,000 in cash. Alpine has 15,000 shares of stock outstanding at a market value of $34 a share. Berkshire has 12,000 shares of stock outstanding at a market price of $23 a share. Neither firm has any debt. The net present value of the acquisition is $51,000. What is the price per share of Alpine after the acquisition?

$38.15

$37.40

$36.20

$39.27

$40.15
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Answer #1

Calculate the price per share as follows:

109 Particulars 110 Shares 111 Market value p 112 Market value 113 Net present valu 114 Total value 115 Price per share 15000

Therefore, the price per share is $37.40.

Formulas:

109 110 111 112 113 114 115 Particulars Shares Market value per share Market value |Net present value Total value Price per s

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