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DEF Stockholders Are Paid the Current Market Value of Their

Question 32

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DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. What are the earnings per share after the merger? A) $2.48 B) $2.53 C) $2.60 D) $2.98 E) $3.27 What are the earnings per share after the merger?


A) $2.48
B) $2.53
C) $2.60
D) $2.98
E) $3.27

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