1. The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 2,000 shares outstanding at a market price of $18 a share. Maggie's Flowers has 2,650 shares outstanding at a price of $28 a share. Maggie's Flowers is acquiring The Floral Shoppe for $34,000 in cash. The incremental value of the acquisition is $2,800. What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?

$4,800

$6,800

$3,800

$7,800

$5,800

2. Nicole Corporation's year-end 2009 balance sheet lists current assets of $747,000, fixed assets of $597,000, current liabilities of $544,500, and long-term debt of $697,000. What is Nicole's total stockholders' equity?

$102,500

$1,241,500

$1,344,000

There is not enough information to calculate total stockholder's equity.