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.

-After the drop in the stock price for Bavarian Brew,what is the transaction value of the merger?

A) $4.995 billion
B) $2.775 billion
C) $3.585 billion
D) $5.239 billion