Use the Following Information to Answer the Question(s)below

question 43

Multiple Choice

Use the following information to answer the question(s) below.
Rearden Metal has earnings per share of $2.It has 10 million shares outstanding and is trading at $20 per share.Rearden Metal is thinking of buying Associated Steel,which has earnings per share of $1.25,4 million shares outstanding,and a price per share of $15.Rearden Metal will pay for Associated Steel by issuing new shares.There are no expected synergies from the transaction.
-If Rearden pays no premium to buy Associated Steel,then Rearden's earnings per share after the merger will be closest to:

• A)10
• B)10.42
• C)12
• D)7.8

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Definitions:

Choosing a Vocation

The process of making a career choice, often involving self-assessment of interests, abilities, and values, and exploring potential career paths.

School Guidance Curriculum

A structured set of learning experiences provided within a school setting designed to assist students in making and implementing informed educational and career choices.

Theorist's Theory

A conceptual framework or set of ideas proposed by a theorist to explain a phenomenon, such as career development processes.

Career Development

The process of managing life, learning, and work over the lifespan.