If Rearden Offers an Exchange Ratio Such That,at Current Pre-Announcement

question 41

Multiple Choice

If Rearden offers an exchange ratio such that,at current pre-announcement share prices for both firms,the offer represents a 20% premium to buy Associated Steel,then Rearden's earnings per share after the merger will be closest to:

• A)$1.85
• B)$1.90
• C)$2.00
• D)$2.25

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