Firm X is planning on merging with Firm Y.Firm X currently has 3,500 shares of stock outstanding at a market price of $25 a share.Firm Y has 400 shares outstanding at a price of $22 a share.The merger will create $500 of synergy.How many of its shares should Firm X offer in exchange for all Firm Y's shares if it wants its acquisition cost to be $9,000?
A) 408
B) 359
C) 409
D) 360
E) 375
Correct Answer:
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