Goodday & Sons Is Being Acquired by Baker for £19,000

question 22

Multiple Choice

Goodday & Sons is being acquired by Baker for £19,000 worth of Baker equity.Baker has 1,500 shares of equity outstanding at a price of £25 a share.Goodday has 1,000 shares outstanding with a market value of £16 a share.The incremental value of the acquisition is £2,000.How many new shares of equity will be issued to complete this acquisition?

• A)760.0 shares
• B)840.0 shares
• C)960.0 shares
• D)1,187.5 shares
• E)1,312.5 shares