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:

Corporate Social Performance

How a company manages its social responsibilities, impacting stakeholders and contributing to sustainable development.

Virtuous Circle

A chain of positive events that reinforce themselves through a feedback loop, leading to further beneficial outcomes.

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The process of offering a logical or reasonable explanation for behaviors or decisions that might otherwise appear irrational.

Government Contract

A legally binding agreement between a business and a government entity for the supply of goods or services.