1. Principal, Inc. is acquiring Secondary Companies for $38,000 in cash. Principal has 4,500 shares of stock outstanding at a market price of $31 a share. Secondary has 1,600 shares of stock outstanding at a market price of $22 a share. Neither firm has any debt. The net present value of the acquisition is $2,400. What is the price per share of Principal after the acquisition?
$31.00
$30.78
$31.53
$32.10
$31.94
2. Firm V has a market value of $450 and Firm A has a market value of $375. If the two firms merged their estimated combined value is $900. What is the synergy of the merger?
$50
$75
$25
$20
$40