The Prad Corporation Is Considering a Merger with the Stone

question 52

Multiple Choice

The Prad Corporation is considering a merger with the Stone Company which has 400,000 outstanding shares selling for $25. An investment dealer has advised that to succeed in its merger Prad Corp. would have to offer $45 per share for Stones's stock. Prad Corp. stock is selling for $30. How many shares of Prad Corp. stock would have to be exchanged to acquire all of Stones's stock?

• A) 266,667
• B) 600,000
• C) 720,000
• D) None of these

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