Question 3.

3.Troyer Markets and Deb's Grocery are all-equity firms. Troyer Markets has 2,400 shares outstanding at a market price of $14.80 a share. Deb's Grocery has 3,200 shares outstanding at a price of $28 a share. Deb's Grocery is acquiring Troyer Markets for $37,500 in cash. What is the merger premium per share? (Points : 2)

a.$0

b.$0.825

c.$1.108

d.$1.216

e.$1.320