KBK LLC has market value of $77 million and 110,000 shares outstanding. JPK Department Store has market value of $18 million and 300,000 shares outstanding. KBK is contemplating acquiring JPK. KBKs CFO concludes that the combined firm with synergy will be worth $129 million, and JPK can be acquired at a price of $28 million.

If the acquisition is by stock, how many shares of KBK's stock will be exchanged for all the shares of JPK if the premerger stock price of KBK is used?

Group of answer choices

46,500

28,000

40,000

33,200

20,000