Question

Given the above data, what is the amount of stock consideration involved in the deal? (Rounding to the closest whole number)

(A) 1,760,000
(B) 22,000
(C) 5,280,000
(D) 66,000

Answer 1

The amount of stock consideration involved in the deal is $5,280,000 thus correct option is C.

Step-by-step explanation:

To determine the amount of stock consideration, we need to refer to the provided data. Let's denote the stock price per share as P and the number of shares issued as S.

The formula for calculating the stock consideration is given by:

`\[ \text{Stock Consideration} = P * S \]`

From the data, if we have the stock price per share P and the number of shares issued S, we can multiply these values to find the total stock consideration.

`\[ \text{Stock Consideration} = P * S = \$660 * 8,000 \]`

Calculating this gives us the total stock consideration involved in the deal.

`\[ \text{Stock Consideration} = \$660 * 8,000 = \$5,280,000 \]`

Therefore, the correct answer is (C) $5,280,000, rounding to the closest whole number. This represents the value of the stock issued as part of the deal.