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Given the following case, answer questions 18 and 20 below:

18. What is the Earning Per Share for Group Co. after merger? *

$11 per share

$12 per share

$13 per share

$14 per share

None of the above

19. What is the price earnings ratio of Group Co. after the merger? *

5.35

7.14

7.38

6.31

None of the above

20. What is the cost of the merger? *

Zero

$2,000

$7,000

$4,000

None of the above

Group co. Currently has 4,000 shares outstanding each sold for 100$, whereas, Intel Inc. has 3000 shares outstanding each sold for $50. Tje earnings per share for Group Co. and Intel Inc. is $11 per share. Group Co. decides to acquire Intel Inc. by offering three new shares of Group Co. for every six shares of Intel Inc. Assume that the merger increases the value of the combined firms by $30,000.

Given the following case, answer questions 18 and 20 below: Group Co. currently has 4,000 shares outstanding each sold for $100, whereas, Intel Inc. has 3,000 shares outstanding each sold for $50. The eamings per share for Group Co. and Intel Inc. is $11 per share. Group Co. decides to acquire Intel Inc. by offering three new shares of Group Co. for every six shares of Intel Inc. Assume that the merger increases the value of the combined firms by $30,000. 18. What is the Earning Per Share for Group Co. after merger? $11 per share O $12 per share $13 per share $14 per share None of the above 19. What is the price earnings ratio of Group Co. after the merger? * 5.35 7.14 7.38 6.31 None of the above 20. What is the cost of the merger? * Zero $2,000 $7,000 $4,000 None of the above

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