-Alpha Has a Growth Rate in EPS of 12

question 106

Multiple Choice

$\begin{array} { r r } &\underline{\text { Alpha }} &\underline{ \text { Beta }} \\\text {Total earnings}& \$ 1,000,000 & \$ 600,000 \\ \text {Number of shares outstanding}&400,000 & 200,000 \\ \text {Earnings per share}&\$ 2.50 & \$ 3.00 \\ \text {Price/earnings}&12 \mathrm { X } & 10 \mathrm { X } \\\text { Market price/share } & \$ 30.00 & \$ 30.00 \end{array}$
-Alpha has a growth rate in EPS of 12%.Beta's growth rate in EPS is 9%.What is the post-merger growth rate assuming the facts as previously stated? (Assume no Synergy.)

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Definitions:

Therapeutic Range

The concentration range in which a drug is effective without being toxic, significant for managing the dosage of medication.

Peak And Trough Levels

Measurements used in pharmacokinetics to determine the highest (peak) and lowest (trough) concentrations of a drug in the patient's bloodstream, typically related to dosing regimens.

Therapeutically

In a manner that is healing or intended to have a healing effect, often related to medical treatment.

Drowsy

A state of feeling sleepy and lethargic, potentially affecting cognitive and motor skills, often due to lack of sleep or certain medications.