Tangshan Mining Is Attempting to Acquire Zhengsen Mining

question 23

Multiple Choice

Tangshan Mining is attempting to acquire Zhengsen Mining. Selected financial data is presented for both companies in the table below: Tangshan Mining has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.8, what will be the EPS of the merged firm?

• A) $1.00
• B) $1.03
• C) $1.08
• D) $2.00

---

Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or values from their mean (average).

Expected Value

The weighted average of all possible values of a random variable, with weights being their probabilities.

Average Temperature

The mean value of temperature taken over a specified period of time, used to describe climate or weather conditions.

Standard Deviation

A quantitative indicator that calculates the degree of spread or variability among a collection of data points.