Bavarian-Bavarian Merger Bavarian Brew Is Planning on Acquiring Bavarian Sausage in a in a Pure

Bavarian-Bavarian Merger
Bavarian Brew is planning on acquiring Bavarian Sausage in a pure exchange merger. Bavarian Brew’s stock is currently trading at $45 and they set the exchange ratio at 1.80. Bavarian Sausage has 75 million shares outstanding which are currently trading at $23 a share.

Twelve months after the merger Bavarian Brew’s stock price drops to $37.

-How many shares will Bavarian Brew issue in the exchange offer?

A) 75 million
B) 135 million
C) 95 million
D) 150 million