The Following Data on a Merger Are Given

question 59

Multiple Choice

The following data on a merger are given:

Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock. What will earnings per share be for Firm A after the merger, assuming that cash is used in the acquisition?

• A)$6
• B)$7
• C)$8
• D)$5

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Definitions:

Classification Categories

The hierarchical system used in biology to organize and categorize all life forms based on shared characteristics and ancestry.

Inclusive

An approach or policy that ensures all people, regardless of their differences, have equal access, opportunities, and rights.

Proper Order

A phrase referring to the correct or suitable arrangement or sequence of elements or actions.

Hypothesis

Supposition established by reasoning after consideration of available evidence; it can be tested by obtaining more data, often by experimentation.