Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500.
How many shares will be given to firm B's stockholders in the stock-financed deal?
A) 3,000
B) 3,300
C) 3,667
D) 4,250
E) 5,762
Correct Answer:
Verified
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