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Popco Enterprises can acquire Stripes, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition

Popco Enterprises can acquire Stripes, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition for Popco is $35,000. Currently Popco has 25,000 shares outstanding which trade at $40 a share, whereas Stripes has 15,000 shares outstanding that trade at $14 a share. How many shares would be given to Stripes shareholders in a stock-financed deal?

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