The Following Data on a Merger Is Given Firm a Has Proposed to Acquire Firm B at a l

question 23

Multiple Choice

The following data on a merger is given: $$\begin{array} { l c l l } & \text { Firm A } & \text { Firm B Firm AB } \\\text { Price per share } & \$ 100 & \$ 10 & \\\text { Total earnings } & \$ 500 & \$ 300 & \\\text { Shares outstanding } & 100 & 40 & \\\text { Total value } & \$ 10,000 & \$ 400 & \$ 11,000\end{array}$$
Firm A has proposed to acquire Firm B at a price of $20 per share for Firm B's stock.What will be the postmerger price per share for Firm A's stock if Firm A pays in cash?

• A)$108
• B)$110
• C)$102
• D)$114

---

Definitions:

Program Services Expenses

Costs directly related to the operational activities of a nonprofit organization, including expenses for its principal services offered to the community.

Supporting Services Expenses

Costs incurred by an organization, particularly in the nonprofit sector, that are necessary to support its main operational activities, including management, administrative, and fundraising expenses.

Statement of Activities

A financial report primarily used by non-profits, showing revenue and expenses over a period to reflect changes in net assets.

With Donor Restrictions

Refers to contributions received by a nonprofit organization that are subject to specific limitations or conditions set by donors.