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

question 28

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 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 the price per share of the Associated Steel immediately after the announcement will be closest to:

• A) $15.00
• B) $17.20
• C) $18.60
• D) $19.10

Understand the implication of legal and ethical issues in personal decisions, like pet ownership and child participation in beauty pageants.

Recognize benefits of engaging in certain activities such as musical training and stargazing from a persuasive standpoint.

Identify the structure and critical components of a well-organized essay.

Recognize and articulate the importance of thesis statements in essays.

---

Definitions:

Phage Components

Parts or structures that make up bacteriophages, viruses that infect and replicate within bacteria.

Assembly

The process of putting together a number of parts or components to form a complete unit, often referred to in manufacturing and software development.

Capsid

A capsid is the protein shell that encloses the genetic material of a virus, protecting it and aiding in its transmission between hosts.

Metabolic Activities

The chemical processes occurring within a living organism that are necessary for the maintenance of life, including energy production and synthesis of molecules.