Alpha Products Has 5,200 Shares Outstanding at a Market Price

question 1

Multiple Choice

Alpha Products has 5,200 shares outstanding at a market price per share of $31. Beta Distributors has 7,500 shares outstanding at a market price of $38 a share. Neither firm has any debt. Beta is acquiring Alpha for $185,000 in cash. What is the merger premium per share?

• A) $2.63
• B) $3.09
• C) $4.58
• D) $6.33
• E) $7.00

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Definitions:

Primary Consumer

Herbivores that feed on primary producers (plants and algae), playing a pivotal role in the transfer of energy through the food chain.

Bird

A warm-blooded vertebrate characterized by feathers, beaks, and typically the ability to fly.

Primary Producer

Organisms, typically plants and algae, that produce organic compounds from carbon dioxide through photosynthesis, serving as a food source for other organisms in the ecosystem.

Plant

Multicellular organisms in the kingdom Plantae that use photosynthesis to make their own food, characterized by green pigmentation, cellulose cell walls, and reproduction via spores or seeds.