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    Merger - Stock Shares

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    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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    https://brainmass.com/business/mergers-and-acquisitions/merger-stock-shares-156619

    Solution Summary

    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?

    $2.19

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