Question
XYZ 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
XYZ 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 $125,000. What is the earnings per share after the merger? Select one: a. $7.50 b. $5.00 c. $4.25 d. $3.60 e. $3.25
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McMillan On Options
Authors: Lawrence G. McMillan
2nd Edition
0471678759, 978-0471678755
