The Floral Shoppe and Maggie's Flowers are all-equity firms. The
Floral Shoppe has 1,850 shares outstanding at a market price of $23
a share. Maggie's Flowers has 2,850 shares outstanding at a price
of $32 a share. Maggie's Flowers is acquiring The Floral Shoppe for
$30,000 in cash. The incremental value of the acquisition is
$3,100. What is the net present value of acquiring The Floral
Shoppe to Maggie's Flowers?
$17,650
$16,650
$14,650
$15,650
$18,650