Beta Corporation and Gamma Ltd.are Merging

question 67

Multiple Choice

Beta Corporation and Gamma Ltd.are merging.

The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would the earnings per share and price-earnings ratio be after the merger?

• A)1.73 and 17.34
• B)1.35 and 22.22
• C)1.6 and 18.75
• D)2 and 15

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Definitions:

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.

Parties

in legal terms involve individuals, companies, or entities who are directly involved in a lawsuit or legal agreement.

Certify

To officially declare or verify that something is true, accurate, or meets a specific standard.

UCC

Stands for the Uniform Commercial Code, which is a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.