Holiday & Sons is being acquired by Miller's for £20,000 worth of Miller's equity.Miller has 1,300 shares of equity outstanding at a price of £20 a share.Holiday has 1,000 shares outstanding with a market value of £18 a share.The incremental value of the acquisition is £2,000.What is the total number of shares in the new firm?
A) 1,000 shares
B) 1,300 shares
C) 1,500 shares
D) 2,000 shares
E) 2,300 shares
Correct Answer:
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