How many of shares should firm a offer in exchange

Reference no: EM131975562

Question: Firm A is planning on merging with Firm B. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 per share. Firm B has 750 shares outstanding at a price of $15 a share. The merger will create $200 of synergy. How many of its shares should Firm A offer in exchange for all of Firm B's share if it want its acquisition cost to be $12,000?

Reference no: EM131975562

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