DEF Stockholders Are Paid the Current Market Value of Their

question 101

Multiple Choice

DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. What is the number of shares in the new firm?

• A) 28,600
• B) 29,000
• C) 30,400
• D) 32,000
• E) 32,500

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Definitions:

Ribosomes

Cell organelles that function as the site of protein synthesis, reading the sequence of messenger RNA to create polypeptides and proteins.

Chloroplasts

Organelles found in the cells of green plants and photosynthetic algae, where photosynthesis takes place, converting light energy into chemical energy.

Photosynthesis

The process by which green plants and certain other organisms transform light energy, usually from the sun, into chemical energy stored in glucose.

Rough Endoplasmic Reticulum

A network of membrane-bound tubules and sacs studded with ribosomes, involved in the synthesis and export of proteins.