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Tuesday's and Thursday's are all-equity firms. Tuesday's has 5,600 shares outstanding at a market price of...

Tuesday's and Thursday's are all-equity firms. Tuesday's has 5,600 shares outstanding at a market price of $28 a share. Thursday's has 4,500 shares outstanding at a price of $42 a share. Thursday's is acquiring Tuesday's. The incremental value of the acquisition is $4,200. What is the value of Tuesday's to Thursday's?

Multiple Choice

  • $161,000

  • $165,400

  • $152,600

  • $156,800

  • $130,200

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Answer #1

Incremental value = = = Value of tuesday to thun day No. of shares on tuesday x Price on Tuesday & 5600 X 28+ 4200 $161000 An

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