An Increase in Earnings Per Share May Be Increased by a Merger

question 27

Multiple Choice

An increase in earnings per share may be increased by a merger if the:

• A) number of shares has increased.
• B) price of the acquirer's stock increases.
• C) acquirer's P/E ratio is higher than that of the target.
• D) firm's additional earnings are spent on legal expenses of the merger.

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Definitions:

Public Health

The science and practice of protecting and improving the health of communities through education, policy making, and research for disease and injury prevention.

Critical Care

Specialized care for patients with life-threatening conditions requiring complex assessment, high-intensity therapies, and interventions.

Supportive Environments

Surroundings that provide emotional, social, and physical support, thereby promoting health and wellbeing.

Political Activism

The direct effort to promote, impede, direct, or intervene in social, political, economic, or environmental reform with the desire to make changes in society.