Alpha Is Planning on Merging with Beta

question 89

Multiple Choice

Alpha is planning on merging with Beta.Alpha will pay Beta's shareholders the current value of their stock in shares of Alpha.Alpha currently has 4,200 shares of stock outstanding at a market price of $40 a share.Beta has 2,500 shares outstanding at a price of $18 a share.The after-merger earnings will be $8,800.What will the earnings per share be after the merger?

• A)$1.61
• B)$1.65
• C)$1.75
• D)$1.81
• E)$1.86

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Definitions:

Trauma

A deeply distressing or disturbing experience, which can lead to long-lasting psychological effects.

Psychological Wound

Emotional or mental harm caused by distressing or traumatic events, leading to long-term difficulties in emotional functioning.

Emotional Fatigue

A state of feeling emotionally worn out and drained as a result of accumulated stress from personal or work-related pressures.

Action Plans

Detailed strategies or roadmaps developed to achieve specific goals or objectives.