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What is the fair value of the common stock of ABC

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Question - Assume that Salsa Corp. acquires James Corp. in a business combination. On its balance sheet, James Corp has an investment in the common stock of ABC Co., a publicly traded company that is listed on the New York Stock Exchange (NYSE) and London Stock Exchange as follows:

Exchange

Price

Transaction Costs

Net

NYSE

$38

$5

$33

London

$40

$6

$34

Required - What is the fair value of the common stock of ABC if the principal market is neither the NYSE nor London?

Reference no: EM133063253

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