What is the cost of acquisition in a stock acquisition?

1. The market price of the target's shares multiplied by the number of new shares issued. (this was listed as the wrong answer)

2. The cash paid to shareholders of the target firm.

3. The market price of the merged firm's shares multiplied by the number of new shares issued.

4. The market price of the bidder's shares multiplied by the number of new shares issued.

5. The difference between the value of the merged firm and the value of the target firm.