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Consider the Following Premerger Information About Firm a and Firm

Question 1

Multiple Choice

Consider the following premerger information about Firm A and Firm B: Consider the following premerger information about Firm A and Firm B: Assume that Firm A acquires Firm B via an exchange of stock at a price of $25 for each share of B's stock.Both A and B have no debt outstanding.What will the earnings per share of Firm A be after the merger? A) $1.60 B) $1.86 C) $1.95 D) $2.02 E) $2.10 Assume that Firm A acquires Firm B via an exchange of stock at a price of $25 for each share of B's stock.Both A and B have no debt outstanding.What will the earnings per share of Firm A be after the merger?


A) $1.60
B) $1.86
C) $1.95
D) $2.02
E) $2.10

Correct Answer:

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