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    Actual Cost of Acquisition Using Company Stock

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    Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price of $40 a share. What is the actual cost of the acquisition using company stock?

    Please show your work to help me going forward with these.

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    https://brainmass.com/business/mergers-and-acquisitions/actual-cost-of-acquisition-using-company-stock-586066

    Solution Preview

    Actual cost of acquisition = Number of shares issued for acquisition × Value per share after the acquisition

    Number of shares issued for acquisition= Acquisition Price ÷ Acquirer Current ...

    Solution Summary

    Calculations are laid out to show how to find the actualy cost of acquisition using company stock.

    $2.19

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