1. High Tech is acquiring Low Tech for $647,000 in cash. High Tech has 35,000 shares of stock outstanding at a market value of $40 a share. Low Tech has 20,000 shares of stock outstanding at a market price of $31 a share. Neither firm has any debt. The net present value of the acquisition is $50,000. What is the price per share of High Tech after the acquisition?
$40.16
$41.43
$42.39
$43.70
$44.56
2. Cadillac, Inc. is acquiring Cheapskate, Inc. for $685,000 in cash. Cadillac has a current market value of $1,200,000 while Cheapskate s current market value is $650,000. The synergy value from the acquisition is $100,000. What is the value of Cadillac, Inc. after the acquisition?
$1,265,000
$1,298,000
$1,327,000
$990,000
$1,175,000