If an Acquiring Company Is Willing to Pay $20 Per

Multiple Choice

If an acquiring company is willing to pay $20 per share for a target's stock, and its own stock is selling for $10, which of the following is not a reasonable payment for 100 shares of the target?

A) $2000, all cash
B) $1000 cash and 100 shares of acquiring company's stock
C) 200 shares of acquiring company's stock
D) $1000 in bonds and 200 shares of the acquiring company's stock