Mound company is considering acquiring ground company the market prices of the common stock of the two companies are $60 and $15 respectively

Mound company is considering acquiring ground company the market prices of the common stock of the two companies are $60 and $15 respectively. if an exchange of stock is made at these prices, ground stockholders will receive approximately how many shares of Mound for every 100 of their shares?

(a)    4

(b)    25

(c)     240

(d)    400

if a merger immediately increases a company’s net income and earnings per share, one may conclude that:

(a) a successful merger has occurred.

(b) things will only get better in the future.

(c) earnings per share will never be diluted.         

(d) earnings per share will decrease in the future.

When evaluating any financial problem, the analyst must consider the worth of the proposed investment:

(a) before considering the method of financing.

(b) and the method of financing simultaneously.

(c) after the method of financing has been determined.

(d) without considering the method of financing

After a two-for-one stock split, a shareholder who had twenty shares with a market value of $70 per share is more likely to have:

(a) forty shares with a market value of $35 per share.

(b) forty shares with a market value of $70 per share.

(c) twenty shares with a market value of $35 per share.

(d) twenty shares with a market value of $140 per share.