How many shares will tgit pizza issue in exchange for tgit

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TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizza's share is currently trading at $35, and it set the exchange ratio at 0.75. TGIT Sausage has 72 million shares outstanding, which are currently trading at $18 a share.

Problem a) How many shares will TGIT Pizza issue in exchange for TGIT Sausage's shares?

Option 1: 100 Million

Option 2: 75 Million

Option 3: 60 Million

Option 4: 54 Million

Option 5: none of the above

Reference no: EM132701357

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