Multiple Choice
The Prad Corporation is considering a merger with the Stone Company which has 500,000 outstanding shares selling for $30. An investment banker has advised that to succeed in its merger Prad Corp. would have to offer $45 per share for Stone's stock. Prad Corp. stock is selling for $25. How many shares of Prad Corp. stock would have to be exchanged to acquire all of Stone's stock?
A) 266,667
B) 600,000
C) 900,000
D) none of these
Correct Answer:
Verified
Correct Answer:
Verified
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