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What is the actual cost of acquisition using company stock

Problem:

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price of $40 a share. What is the actual cost of the acquisition using company stock?

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Finance Basics: What is the actual cost of acquisition using company stock

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Finance Basics: What is the actual cost of acquisition using company stock

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