The Prada Corporation Is Considering a Merger with the Stone

question 35

Multiple Choice

The Prada Corporation is considering a merger with the Stone Company, which has 500,000 outstanding shares selling for $30. An investment banker has advised that to succeed in its merger, Prada Corp. would have to offer $45 per share for Stone's stock. Currently, Prada Corp. stock is selling for $25. How many shares of Prada Corp. stock would have to be exchanged to acquire all of Stone Company's stock?

• A) 266,667
• B) 600,000
• C) 900,000
• D) 20,000

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his work on the comparison of cultures across nations, especially for developing the cultural dimensions theory.

Culture

The shared beliefs, customs, practices, and social behavior of a particular nation, group, or society.

Americans

Refers to the people of the United States of America or their characteristics, culture, or attributes.

Handshake

A greeting or parting tradition involving the grasping and shaking of each other's hands, often used to convey trust, respect, or agreement.