TJ's and Corner Grocery Are All-Equity Firms

question 81

Multiple Choice

TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Grocery has 3,000 shares outstanding at a price of $22.50 a share. Corner Grocery is acquiring TJ's for $45,000 in cash. What is the merger premium per share?

• A) $0
• B) $1.30
• C) $1.11
• D) $1.28
• E) $.32

Recognize the implications of corporate personhood on rights and responsibilities.

Understand the concept of a corporation’s implied powers.

Know the procedures and consequences of the commingling of personal and corporate interests.

Understand the concept and application of neurogenesis.

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Definitions:

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, touch, taste, and smell) from the body to the central nervous system.

Interneurons

A type of neuron that connects sensory and motor neurons within the central nervous system.

Motor Neurons

Nerve cells responsible for conveying impulses from the spinal cord or brain to muscles or glands, causing them to act.

Psychoactive Drugs

Substances that alter a person's mood, perception, or brain function.