QUESTION 5 Omnicom and Paccar are all-equity firms. Omnicom has 35,000 shares outstanding...
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Finance
QUESTION 5
Omnicom and Paccar are all-equity firms. Omnicom has 35,000 shares outstanding at a market price of $17.60 a share while Paccar has 58,000 shares outstanding at a price of $42.20 a share. Omnicom is acquiring Paccar for $2,600,000 in cash. The incremental value of the acquisition is $475,000. What is the net present value of acquiring Paccar to Omnicom?
$313,800
$281,700
$298,300
$307,600
$322,600
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