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

question 42

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 earnings per share be for Firm A after the merger assuming that cash is used in the acquisition?

• A)$6
• B)$7
• C)$8
• D)$5

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Definitions:

School Achievement

The measure of a student's academic progress and performance in an educational setting.

Academic Bottom Half

Refers to students who perform below the median in academic achievement in a given population.

Special/Remedial Education

Tailored educational programs designed to meet the needs of learners who require extra support to achieve academic success.

Gender Schemas

Cognitive frameworks that organize information related to gender, influencing how individuals perceive and interact with others based on gendered expectations.