The Sheridan Corporation Is Considering a Merger with the Kent

question 34

Multiple Choice

The Sheridan Corporation is considering a merger with the Kent Company which has 600,000 outstanding shares selling for $20.An investment dealer has advised that to succeed in its merger Sheridan Corp.would have to offer $40 per share for Kent's stock.Sheridan Corp.stock is selling for $25.How many shares of Sheridan Corp.stock would have to be exchanged to acquire all of Kent's stock?

• A) 960,000 shares
• B) 600,000 shares
• C) 750,000 shares
• D) 480,000 shares

---

Definitions:

Strict Liability

A legal doctrine that holds an individual or entity responsible for their actions or products without the need to prove negligence or fault.

Standard Of Care

The degree of prudence and caution required of an individual who is under a duty of care.

Confusion

A state of being bewildered or unclear in one’s thoughts or feelings.

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/real estate, intellectual property, or another asset.