Prior to a potential merger Veggie Co has 5625 shares outstanding at a market price...
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Prior to a potential merger Veggie Co has 5625 shares outstanding at a market price per share of $29.50. Fruits Inc 3125 shares outstanding at $26 per share. Assume Veggie Co has estimated the value of the synergistic benefits from acquiring Fruit to be $5400. Neither firm has outstanding debt. The acquiring firm has offered a price of $27 per share to the target. If the deal goes through, what is the priceper share of the merged firm?
A) 29.90
B) 27.00
C) 28.45
D) 29.50
E) 27.75
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