What is the merger premium per share, Finance Basics

What is the merger premium per share

Problem

Paula Lid and Jones Inc are financed with equity. Paula has 2,750 shares outstanding at a market price of $18.00 a share. Jones has 3,000 shares outstanding at a price of $23.00 a share. Jones is acquiring Paula for $55,000 in cash. What is the merger premium per share?

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