Acquiring all of stones stock


Question:

The Prad Corporation is considering a merger with the Stone Company which has 400,000 outstanding shares selling for $25. An investment banker has advised that to succeed in its merger Prad Corp. would have to offer $45 per share for Stones's stock. Prad Corp. stock is selling for $30. How many shares of Prad Corp. stock would have to be exchanged to acquire all of Stones's stock?

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Finance Basics: Acquiring all of stones stock
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