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The Cycle Stop has 1,600 shares outstanding at a market price per share of $8.48. Kate's Wheels has 1,750 shares outstanding at a market price

The Cycle Stop has 1,600 shares outstanding at a market price per share of $8.48. Kate's Wheels has 1,750 shares outstanding at a market price of $13 a share. Neither firm has any debt. Kate's Wheels is acquiring The Cycle Stop for $15,000 in cash. What is the merger premium per share?

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