Firm X Is Being Acquired by Firm Y for $53,000

Multiple Choice

Firm X is being acquired by Firm Y for $53,000 worth of Firm Y stock. The incremental value of the acquisition is $1,680. Firm X has 2,400 shares of stock outstanding at a price of $22 a share. Firm Y has 1,800 shares of stock outstanding at a price of $53 a share. What is the actual cost of the acquisition using company stock?

A) $52,929
B) $53,529
C) $56,408
D) $57,108
E) $58,607