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What is the price per share of the existing firm

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Suppose you have the following information concerning an acquiring firm (A) and a target firm (B). Neither firm has any debt. The incremental value of the acquisition is estimated to be $250,000. Firm B is willing to be acquired for $540,000 worth of Firm A's stock.

Firm A Firm BNumber of Shares50,00018,000Price per Share$50.00$22.50

What is the price per share of the existing firm after the acquisition is completed?

Reference no: EM132611412

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