Firm A is being acquired by Firm B for $62,000 worth of Firm B stock. The incremental value of the acquisition is $4,300. Firm A has 2,700 shares of stock outstanding at a price of $22 a share. Firm B has 10,400 shares of stock outstanding at a price of $31 a share. What is the actual cost of the acquisition using company stock

$63,960

Explanation:

Number of shares issued =  $62,000 / $31 = 2,000 shares

Value per share after merger = (10,400 * $32) + (2,700 * $22 + $4,300)/ 10,400 + 2,000

Value per share after merger = $332800 + $63700 / 12400 shares

Value per share after merger = $396,500 / 12400 shares

Value per share after merger = $31.9758064516129

Value per share after merger = $31.98

Actual cost of acquisition = 2,000 shares * $31.98

Actual cost of acquisition = $63,960

answer; i do believe that the correct answer is (c)///management,unions, lobbyists and

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.