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

question 52

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.
-If Rearden offers an exchange ratio such that,at current pre-announcement share prices for both firms,the offer represents a 20% premium to buy Associated Steel,then the actual premium Rearden will pay will be closest to:

• A)14.7%.
• B)18.0%.
• C)20.0%.
• D)22.4%.

Recognize the global and societal impact of the production of illegal substances.

Understand the role of companion apps in enhancing TV news consumption.

Comprehend the requirements and effects of the Canadian Broadcasting Act on content diversity.

Grasp the concept of agenda-setting and its impact on public discourse.

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Definitions:

Accounting Cycle

The process of recognizing, recording, classifying, and summarizing financial transactions in a business over a specific period.