Beta Corporation and Gamma Ltd.are merging.

The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would the earnings per share and price-earnings ratio be after the merger?
A)1.73 and 17.34
B)1.35 and 22.22
C)1.6 and 18.75
D)2 and 15

Question

Beta Corporation and Gamma Ltd.are merging.

The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would the earnings per share and price-earnings ratio be after the merger?
A)1.73 and 17.34 
B)1.35 and 22.22 
C)1.6 and 18.75 
D)2 and 15

Quizplus · Accepted Answer

The Answer of Beta Corporation and Gamma Ltd.are merging.

The basis for the merger will be a share-for-share exchange based on market prices, and the share value of the combined firm is expected to remain unchanged.What would the earnings per share and price-earnings ratio be after the merger?
A)1.73 and 17.34 
B)1.35 and 22.22 
C)1.6 and 18.75 
D)2 and 15

Beta Corporation and Gamma Ltd.are Merging