Firm X Is Being Acquired by Firm Y for £35,000

Firm X is being acquired by Firm Y for £35,000 worth of Firm Y equity.The incremental value of the acquisition is £2,500.Firm X has 2,000 shares of equity outstanding at a price of £16 a share.Firm Y has 1,200 shares of equity outstanding at a price of £40 a share.What is the actual cost of the acquisition using company equity?

A) £34,750
B) £34,789
C) £35,000
D) £35,289
E) £35,500