Alto and solo are all-equity firms alto has 2400 shares


Question - Alto and Solo are all-equity firms. Alto has 2,400 shares outstanding at a market price of $24 a share. Solo has 4,000 shares outstanding at a price of $17 a share. Solo is acquiring Alto for $63,000 in cash. The incremental value of the acquisition is $5,500.

What is the value of the combined firm?

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Finance Basics: Alto and solo are all-equity firms alto has 2400 shares
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