The incremental value of the acquisition is 302000 what is


Blue Sox and Red Sox are all-equity firms. Blue Sox has 20,000 shares outstanding at a market price of $15 a share while Red Sox has 45,000 shares outstanding at a price of $31.40 a share. Blue Sox is acquiring Red Sox for $1,620,000 in cash. The incremental value of the acquisition is $302,000. What is the net present value of acquiring Red Sox to Blue Sox?

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Basic Statistics: The incremental value of the acquisition is 302000 what is
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