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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:

Understand how to balance the use of abstract and concrete words to enhance message clarity and impact.

Identify methods to emphasize key points or ideas in sentences and paragraphs.

Understand the role and function of independent and dependent clauses in sentence construction.

Understand the structure and components of effective paragraphs.

Definitions:

Unconscious Conflicts

Internal struggles within the mind that occur without the individual's awareness, often influencing behavior and emotions.

Fixation

An obsessive focus or attachment to an object, concept, or person, often to the exclusion of other considerations.

Anxiety

Anxiety is a feeling of fear, dread, and uneasiness that may occur as a reaction to stress, and can impact daily functioning if too intense or persistent.

Defence Mechanisms

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.