Hanover Tires Is Being Acquired by Better Tires for $89,000

Multiple Choice

Hanover Tires is being acquired by Better Tires for $89,000 worth of Better Tires stock.Hanover Tires has 2,500 shares of stock outstanding at a price of $36 a share.Better Tires has 6,000 shares outstanding with a market value of $23 a share.The incremental value of the acquisition is $4,200.How many new shares of stock will be issued to complete this acquisition?

A) 2,472 shares
B) 3,016 shares
C) 3,133 shares
D) 3,870 shares
E) 3,987 shares