Alpha Is Planning on Merging with Beta

question 54

Multiple Choice

Alpha is planning on merging with Beta. Alpha will pay Beta's shareholders the current value of their stock in shares of Alpha. Alpha currently has 6,500 shares of stock outstanding at a market price of $44 a share. Beta has 2,100 shares outstanding at a price of $22 a share. The post-merger earnings will be $10,400. What will the earnings per share be after the merger?

• A) $1.43
• B) $1.38
• C) $1.25
• D) $1.51
• E) $1.16

---

Definitions:

Fluid

Characterizes materials or substances that can flow and do not have a fixed shape, or more broadly, refers to situations or concepts that are flexible and adaptable.

Colorblind Racism

A form of racism that asserts race does not matter and ignores systemic and historical inequities based on race.

Perpetuates

The act of making something continue indefinitely, often referring to social norms, inequalities, or behaviors.

Culture-Based Argument

A culture-based argument is a reasoning or persuasive technique that relies on cultural norms, values, beliefs, or practices to support a position or viewpoint.