Let's clarify and solve your problem step by step. #### **Given:** - **Cogrelli Cogs (target):** - Shares outstanding: **165,000** - Price per share: **$43.85** - **Spacely Sprockets (acquirer):** - Shares outstanding: **475,500** - Price per share: **$32.50** - **Acquisition price:** $57 per Cogrelli share, **paid in Spacely Sprockets stock**. --- ### **a) How many new shares of the acquirer's stock will be issued to pay for the merger?** #### 1. **Total purchase price for Cogrelli:** \[ \text{Total price} = 165{,}000 \text{ shares} \times \$57 = \$9,405,000 \] #### 2. **Spacely Sprockets stock price:** \[ \text{Stock price} = \$32.50 \text{ per share} \] #### 3. **Number of new Spacely shares to be issued:** \[ \text{Number of shares issued} = \frac{\$9,405,000}{\$32.50} = 289,384.615 \] **Round to the nearest whole share:** \[ \boxed{289,385} \] --- ### **b) How many shares will the acquirer have after the merger?** \[ \text{New total shares} = \text{Old Spacely shares} + \text{New shares issued} \] \[ = 475,500 + 289,385 = \boxed{764,885} \] --- ## **Summary Table** | Part | Answer | |------|--------------| | a | **289,385** | | b | **764,885** |