Waterbury Co

Waterbury Co. has agreed to be acquired by Ferrier,Inc. for $25,000 worth of Ferrier stock. Ferrier currently has 1,500 shares of stock outstanding at a price of $21 a share. Waterbury has 1,000 shares outstanding at a price of $22. The incremental value of the acquisition is $4,000. What is the merger premium per share?

A) $1
B) $2
C) $3
D) $4
E) $5