Problemthe floral shoppe and maggies flowers are all-equity, Ask an Expert

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Problem:

The Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 2,273 shares outstanding at a market price of $15.76 a share. Maggie's Flowers has 5,000 shares outstanding at a price of $17 a share. Maggie's Flowers is acquiring The Floral Shoppe for $40,042 in cash. The incremental value of the acquisition is $2,732.

Required:

Question: What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170072

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