Question

Suppose Bank A's stock price is $75 and Bank B's stock price is $25. Bank A is planning to purchase Bank B by paying Bank B's shareholders a bonus of $10 per share. If Bank B has 100,000 shares outstanding, how many shares of Bank A will the shareholders of Bank B receive?

A. 100,000 shares

B. 33,333 shares

C. 46,667 shares

D. 214,286 shares

E. None of the options is correct

Answer

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