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Idacorp Company is acquiring Johnson Company for $362,000 in cash. Idacorp has a current market value...

Idacorp Company is acquiring Johnson Company for $362,000 in cash. Idacorp has a current market value of $442,000 while Johnson current market value is $308,000. The synergy value from the acquisition is $104,000. What is the value of Idacorp after the acquisition?

$492,000

$484,000

$501,000

$509,000

$472,000
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Answer #1

Value of company after acquisition = (Present market value-Cash given for acquisition) + value of acquired company + Synergy

= ( $442,000 - $362,000 ) + $308,000 + $104,000

= $ 492,000

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