Company A is planning to acquire Company B. After the acquisition there will be an estimated cost saving for the merged company of $27 million. At the moment company A's shares trade for $155 and there are 3,500,000 shares outstanding. Company B's shares trade for $97 each and there are 4,000,000 shares outstanding. The boards of directors of the two companies agree to share the savings in the following way: 70% to shareholders of company A and 30% to shareholders of company B. The acquisition will be paid with newly issued shares of company A. How many shares of company A will B's shareholders receive after the acquisition, for each one of their old shares? (a) 1.35 (b) 1.03 (c) 0.62 (d) 0.53 (e) I choose not to answer. Answer is C