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:

Cartilage

A flexible connective tissue found in various forms in the human and animal body, notably in the joints, rib cage, ear, and nose.

Voice Box

is another term for the larynx, an organ in the top of the neck involved in breathing, producing sound, and protecting the trachea against food aspiration.

The Wrist

A joint complex consisting of the distal end of the radius and ulna and the proximal row of carpal bones, facilitating hand movement.

Galactosemia

A rare genetic disorder characterized by the inability to metabolize the sugar galactose properly, leading to various health issues.