The Lily Pad has 1,500 shares outstanding at a market price per share of $12. The Specialty Shop has 2,600 shares outstanding at a market price of $18 a share. Neither firm has any debt. The Specialty Shop is acquiring The Lily Pad for $20,000 in cash. The incremental value of the acquisition is $3,100. What is the value of The Lily Pad to The Specialty Shop?

A) $2,000
B) $9,000
C) $11,600
D) $16,900
E) $21,100

The value of The Lily Pad to The Specialty Shop can be calculated by adding the acquisition price of The Lily Pad ($20,000) to the incremental value of the acquisition ($3,100), which equals $23,100. However, since the question asks for the value of The Lily Pad to The Specialty Shop, not the total cost or value including the incremental value, the correct approach is to consider the acquisition price alone, which is $20,000. The incremental value is an additional benefit to the Specialty Shop, making the total value of the deal to them $23,100, but the value of The Lily Pad itself in this context is the acquisition price. The options provided do not directly match this explanation due to a misunderstanding in the explanation process. The correct calculation should focus on the direct question asked, which seems to have been misinterpreted in the initial explanation.