Firm B Is Willing to Be Acquired by Firm a at a Price

Multiple Choice

Firm B is willing to be acquired by firm A at a price of $34 a share in either cash or stock. The incremental value of the proposed acquisition is estimated at $80,000. What is the price per share of firm AB if the merger is an all-stock deal?

A) $18.00
B) $18.70
C) $18.80
D) $19.32
E) $21.00