Please show work Cascade Company is acquiring Times Inc for

Please show work

Cascade Company is acquiring Times, Inc. for $408,000 in cash. Cascade has 11,000 shares of stock outstanding at a market value of $27 a share. Times has 24,000 shares of stock outstanding at a market price of $16 a share. Neither firm has any debt. The net present value of the acquisition is $42,000. What is the price per share of Cascade after the acquisition?

$27.46

$30.82

$31.60

$28.56

$33.60

Solution

Price per share of Cascade after the acquisition:

= Share price before acquisition + NPV per share

= $27 + $42,000/11,000

= $30.82

Hence, correct option is $30.82