Solved: What is the value per share of the merged firm, Finance Basics

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What is the value per share of the merged firm

Problem:

Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 1,800 shares outstanding at a price of $15 a share. What is the value per share of the merged firm?

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Finance Basics: What is the value per share of the merged firm

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