Palace Inns Is Acquiring Sequoia for $38,000 in Cash

Palace Inns is acquiring Sequoia for $38,000 in cash. Palace Inns has 1,500 shares of stock outstanding at a market price of $26 a share. Sequoia has 1,800 shares of stock outstanding at a
Market price of $18 a share. Neither firm has any debt. The net present value of the acquisition is
$1,400. What is the price per share of Palace Inns after the acquisition?

A) $23.20
B) $26.93
C) $35.47
D) $44.93
E) $47.26