Guido's and Elrod's are allequity firms. Guido's has 2,200 shares outstanding at a market price...
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Guido's and Elrod's are allequity firms. Guido's has 2,200 shares outstanding at a market price of $37 a share. Elrod's has 3,100 shares outstanding at a price of $46 a share. Elrod's is acquiring Guido's for $82,500 in cash. The incremental value of the acquisition is $4,400. What is the net present value of acquiring Guido's to Elrod's? a. $1,100 b. $2,200 c. $3,300 d. $4,400 e. $7,700
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