Goodday & Sons Is Being Acquired by Baker,Inc

Goodday & Sons is being acquired by Baker,Inc. for $19,000 worth of Baker stock. Baker has 1,500 shares of stock outstanding at a price of $25 a share. Goodday has 1,000 shares outstanding with a market value of $16 a share. The incremental value of the acquisition is $2,000. How many new shares of stock will be issued to complete this acquisition?

A) 760.0 shares
B) 840.0 shares
C) 960.0 shares
D) 1,187.5 shares
E) 1,312.5 shares

Correct Answer:

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