Use the Following Information to Answer the Question(s)below

question 44

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metal has earnings per share of $2.It has 10 million shares outstanding and is trading at $20 per share.Rearden Metal is thinking of buying Associated Steel,which has earnings per share of $1.25,4 million shares outstanding,and a price per share of $15.Rearden Metal will pay for Associated Steel by issuing new shares.There are no expected synergies from the transaction.
-What is Rearden's earnings per share after the takeover?

• A)$1.85
• B)$1.92
• C)$2.00
• D)$2.25

Identify grammatical and punctuation errors in sentences.

Comprehend the structure and narrative flow in paragraphs.

Recognize the historical and cultural importance conveyed through documentaries and literature.

Analyze the chronological sequence of events in narrative plans.

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Definitions:

Expansionary Gap

A situation in an economy where actual gross domestic product exceeds the potential GDP, leading to inflationary pressures.

Natural Rate

The level of economic output at which the rate of inflation is stable, often related to the concept of the natural rate of unemployment where the labor market is in equilibrium.

Consumer Price Index

A metric that analyzes the weighted average cost of a selection of consumer goods and services, such as medical care, transportation, and food, to measure inflation.

Short-Run Aggregate Supply

Represents the total supply of goods and services that firms in an economy plan on selling during a short-term period, given the level of prices.