Popco Enterprises can acquire Stripes, Inc for $250,000 in either cash or stock

Business May 02, 2023

Popco Enterprises can acquire Stripes, Inc for $250,000 in either cash or stock. Both companies are 100% equity financed. The synergy value of the acquisition for Popco is $35,000. Currently Popco has 25,000 shares outstanding which trade at $40 a share, whereas Stripes has 15,000 shares outstanding that trade at $14 a share. How many shares would be given to Stripes' shareholders in a stock-financed deal?