$\begin{array} { r r } &\underline{\text { Alpha }} &\underline{ \text { Beta }} \
\text {Total earnings}& \$ 1,000,000 & \$ 600,000 \
\text {Number of shares outstanding}&400,000 & 200,000 \
\text {Earnings per share}&\$ 2.50 & \$ 3.00 \
\text {Price/earnings}&12 \mathrm { X } & 10 \mathrm { X } \
\text { Market price/share } & \$ 30.00 & \$ 30.00 \end{array}$
-Which of the following would be true concerning the EPS of Alpha Corp.in 5 years? Alpha's EPS would be:
A) higher due to the merger.
B) the same with or without the merger.
C) lower without the merger.
D) lower with the merger.

Question

$\begin{array} { r r } &\underline{\text { Alpha }} &\underline{ \text { Beta }} \
\text {Total earnings}& \$ 1,000,000 & \$ 600,000 \ 
\text {Number of shares outstanding}&400,000 & 200,000 \
 \text {Earnings per share}&\$ 2.50 & \$ 3.00 \ 
 \text {Price/earnings}&12 \mathrm { X } & 10 \mathrm { X } \
\text { Market price/share } & \$ 30.00 & \$ 30.00 \end{array}$
-Which of the following would be true concerning the EPS of Alpha Corp.in 5 years? Alpha's EPS would be:
A) higher due to the merger.
B) the same with or without the merger.
C) lower without the merger.
D) lower with the merger.

Quizplus · Accepted Answer

The Answer of $\begin{array} { r r } &\underline{\text { Alpha }} &\underline{ \text { Beta }} \
\text {Total earnings}& \$ 1,000,000 & \$ 600,000 \ 
\text {Number of shares outstanding}&400,000 & 200,000 \
 \text {Earnings per share}&\$ 2.50 & \$ 3.00 \ 
 \text {Price/earnings}&12 \mathrm { X } & 10 \mathrm { X } \
\text { Market price/share } & \$ 30.00 & \$ 30.00 \end{array}$
-Which of the following would be true concerning the EPS of Alpha Corp.in 5 years? Alpha's EPS would be:
A) higher due to the merger.
B) the same with or without the merger.
C) lower without the merger.
D) lower with the merger.

-Which of the Following Would Be True Concerning the EPS