Hanover Tires Is Being Acquired by Better Tires for $89,000

question 79

Multiple Choice

Hanover Tires is being acquired by Better Tires for $89,000 worth of Better Tires stock.Hanover Tires has 2,500 shares of stock outstanding at a price of $36 a share.Better Tires has 6,000 shares outstanding with a market value of $23 a share.The incremental value of the acquisition is $4,200.How many new shares of stock will be issued to complete this acquisition?

• A)2,472 shares
• B)3,016 shares
• C)3,133 shares
• D)3,870 shares
• E)3,987 shares

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Definitions:

Developing Human Organism

The physiological and psychological growth and changes that occur in a human being from conception to adulthood.

Ninth Week

A specific time frame, often used to denote the ninth week of a particular period such as a university semester or a pregnancy.

Conception

The process of becoming pregnant involving the fertilization of an egg by a sperm, or the formation of an original idea or plan.

Fetus

A developing mammal or human after the embryonic stage and before birth, during which significant growth and organ development occur.