Answered
The Lily Pad has 1,500 shares outstanding at a market price per share of $12. The Specialty Shop has 2,600 shares outstanding at a market price of $18 a share. Neither firm has any debt. The Specialty Shop is acquiring The Lily Pad for $20,000 in cash. The incremental value of the acquisition is $3,100. What is the value of The Lily Pad to The Specialty Shop?
A) $2,000
B) $9,000
C) $11,600
D) $16,900
E) $21,100
On Jul 19, 2024