Acquiring Corp Agrees to Buy 100% of the Outstanding Shares

Multiple Choice

Acquiring Corp agrees to buy 100% of the outstanding shares of Target Corp in a share for share exchange.How would Acquiring Corp determine how many new share of its
Stock it would have to issue?

A) Multiply the purchase price premium paid for Target's stock by the number of shares of target stock outstanding.
B) Multiply the share exchange ratio by the number of Acquirer shares outstanding.
C) Add the number of Acquirer and Target shares outstanding
D) Multiply the share exchange ratio by the number of Target shares outstanding.
E) Divide the share exchange ratio by the purchase price premium