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Alexandra's is being acquired by David's, Inc. for $20,000 worth of David's stock. Miller has 1,300 shares of stock outstanding at a price of $20

Alexandra's is being acquired by David's, Inc. for $20,000 worth of David's stock. Miller has 1,300 shares of stock outstanding at a price of $20 a share. Holiday has 1,000 shares outstanding with a market value of $18 a share. The incremental value of the acquisition is $2,000. What is the total number of shares in the new firm?

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1,000 shares

1,300 shares

2,000 shares

2,300 shares

1,500 shares

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