-Assume Alpha Pays a 20% Premium for Beta in a 1,000,000

Multiple Choice

$\begin{array}{lrr}&\text {Alpha}&\text {Beta}\\ \text { Total earnings } & \$ 1,000,000 & \$ 600,000 \\\text { Number of shares outstanding } & 400,000 & 200,000 \\\text { Earnings per share } & \$ 2.50 & \$ 3.00 \\\text { Price/earnings } & 12 \mathrm{X} & 10 \mathrm{X} \\\text { Market price/share } & \$ 30.00 & \$ 30.00\end{array}$

-Assume Alpha pays a 20% premium for Beta in a pooling of interests' transaction. Calculate the post merger

A) $2.50
B) $3.00
C) $3.50
D) $4.00
E) P.S. for Alpha.