What is the price per share of principal after acquisition

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Reference no: EM131610469

1. Principal, Inc. is acquiring Secondary Companies for $38,000 in cash. Principal has 4,500 shares of stock outstanding at a market price of $31 a share. Secondary has 1,600 shares of stock outstanding at a market price of $22 a share. Neither firm has any debt. The net present value of the acquisition is $2,400. What is the price per share of Principal after the acquisition?

$31.00

$30.78

$31.53

$32.10

$31.94

2. Firm V has a market value of $450 and Firm A has a market value of $375. If the two firms merged their estimated combined value is $900. What is the synergy of the merger?

$50

$75

$25

$20

$40

Reference no: EM131610469

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