Hanover Tires Is Being Acquired by Better Tires for $85,000

Multiple Choice

Hanover Tires is being acquired by Better Tires for $85,000 worth of Better Tires stock. Hanover Tires has 2,600 shares of stock outstanding at a price of $32 a share. Better Tires has 7,500 shares outstanding with a market value of $29 a share. The incremental value of the acquisition is $2,200. How many new shares of stock will be issued to complete this acquisition?

A) 2,872
B) 3,016
C) 3,133
D) 2,931
E) 2,987