Keycorp Corporation is acquiring Lucent Technologies Corporation for $563,000 in cash. Keycorp has 19,200 shares...
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Keycorp Corporation is acquiring Lucent Technologies Corporation for $563,000 in cash. Keycorp has 19,200 shares of stock outstanding at a market value of $37.60 a share. Lucent Technologies has 17,500 shares of stock outstanding at a market price of $28 a share. Neither firm has any debt. The net present value of the acquisition is $42,000. What is the price per share of Keycorp after the acquisition?
| $43.08 | ||
| $41.27 | ||
| $40.53 | ||
| $39.79 | ||
| $38.26 |
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