Assume that Smith Corp. acquires Jones Corp. in a business combination. On its balance sheet,...
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Accounting
Assume that Smith Corp. acquires Jones Corp. in a business combination. On its balance sheet, Jones has an investment in the common stock of ABC Company, a publicly traded company that is listed on the New York Stock Exchange (NYSE) and London Stock Exchange as follows:
Exchange Price Transaction Costs Net
NYSE $38 $5 $33
London $40 $6 $34
What is the fair value of the common stock of ABC if the principal market is neither the NYSE nor London?
Choices:
$40
$38
$34
$33
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