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he Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,900 shares outstanding...

he Floral Shoppe and Maggie's Flowers are all-equity firms. The Floral Shoppe has 1,900 shares outstanding at a market price of $22 a share. Maggie's Flowers has 2,800 shares outstanding at a price of $32 a share. Maggie's Flowers is acquiring The Floral Shoppe for $36,000 in cash. The incremental value of the acquisition is $3,200.

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

What is the best way to calculate this problem Excel or a Calculator?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

NO SPECIFIC CALCULATIONS REQUIRED SO EXCEL OR CALCULATOR, BOTH ARE OK

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