Let's clarify your question and data: - **Cogrelli Cogs**: - Shares outstanding = **165,000** - Price per share = **$43.85** - **Spacely Sprockets**: - Shares outstanding = **475,500** - Price per share = **$32.50** - **Acquisition Price**: - Cogrelli Cogs is being acquired for (you wrote "5 7 , at 0,0 0 0", which seems garbled; let's assume **$43.85/share**, the current price, unless you specify otherwise). - **Payment Method**: - All-stock deal at an exchange ratio (not given directly, but maybe it's at "market value" per share). Let me solve **assuming Spacely is offering $43.85 per Cogrelli share, paid in Spacely Sprockets shares valued at $32.50 each.** --- ### a) **How many new shares of the acquirer's stock will be issued?** 1. **Total price paid:** \( 165,000 \text{ shares} \times \$43.85/\text{share} = \$7,235,250 \) 2. **Shares issued:** Spacely stock is worth $32.50 per share, so: \( \text{New shares issued} = \frac{\$7,235,250}{\$32.50} = 222,622. \) **Round to nearest whole share:** **Answer:** **222,622 shares** --- ### b) **How many shares will the acquirer have after the merger?** - Current Spacely shares = **475,500** - New shares issued = **222,622** **Total after merger:** \( 475,500 + 222,622 = 698,122 \) **Answer:** **698,122 shares** --- ## **Summary Table** | Question | Answer | |----------|-------------| | a) | 222,622 shares | | b) | 698,122 shares | If you have a different acquisition price or additional info, let me know!