Firm K Is Planning on Merging with Firm L

Firm K is planning on merging with Firm L.Firm K currently has 5,500 shares of stock outstanding at a market price of $28 a share.Firm L has 500 shares outstanding at a price of $16 a share.The merger will create $600 of synergy.Firm K plans to offer a sufficient number of its shares to acquire Firm L at an acquisition cost of $8,200.How many total shares will be outstanding in the merged firm?

A) 5,608
B) 5,792
C) 5,749
D) 5,760
E) 5,775

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