Ginormous Oil Entered into an Agreement to Purchase All of the Outstanding

Multiple Choice

Ginormous Oil entered into an agreement to purchase all of the outstanding shares of Slick Company for $60 per share.The number of outstanding shares at the time of the announcement was 82 million.The book value of liabilities on the balance sheet of Slick Co.was $1.46 billion.What was the cost of this acquisition to the shareholders of Ginormous Oil?

A) $1.46 billion
B) $3.46 billion
C) $4.92 billion
D) $6.38 billion
E) $8.38 billion