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Goodday & Sons is being acquired by Baker, Inc. for $15,000 worth of Baker stock. Baker has 1,500 shares of stock outstanding at a price
Goodday & Sons is being acquired by Baker, Inc. for $15,000 worth of Baker stock. Baker has 1,500 shares of stock outstanding at a price of $30 a share. Goodday has 1,000 shares outstanding with a market value of $16 a share. The incremental value of the acquisition is $2,000. How many new shares of stock will be issued to complete this acquisition? Please show work. Thanks.
A. 760.0 shares
B. 840.0 shares
C. 500.0 shares
D. 960 shares
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