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:

Psychomotor Agitation

A series of unintentional and purposeless motions that stem from mental tension and anxiety.

Angel Dust

Street name for PCP (Phencyclidine), a powerful hallucinogenic drug.

Phencyclidine (PCP)

A dissociative drug, formerly used as an anesthetic, that leads to hallucinations, dissociative experiences, and potentially violent behavior.

Tranq

Slang term for tranquilizers, which are medications used to reduce tension or anxiety.