The Cycle Stop Has 1,600 Shares Outstanding at a Market

Multiple Choice

The Cycle Stop has 1,600 shares outstanding at a market price per share of $8.48.Kate's Wheels has 1,750 shares outstanding at a market price of $13 a share.Neither firm has any debt.Kate's Wheels is acquiring The Cycle Stop for $15,000 in cash.What is the merger premium per share?

A) $0.27
B) $0.46
C) $0.90
D) $1.43
E) $2.52