Please show work MB Engineering and Nano Manufacturing are a

Please show work

MB Engineering and Nano Manufacturing are all-equity firms.MB Engineering has 4,200 shares outstanding at a market price of $31 a share. Nano Manufacturing has 4,200 shares outstanding at a price of $52 a share. Nano Manufacturing is acquiring MB Engineering for $142,000 in cash. The synergy of the acquisition is $27,500. What is the value of MB Engineering to Nano Manufacturing?

$129,500

$148,200

$136,400

$157,700

$164,900

Solution

value of MB Engineering to Nano Manufacturing = 4200 * 31 + 27,500

value of MB Engineering to Nano Manufacturing = 157,700