Dressler, Inc., is planning on merging with Weston Foods. Dressler will pay Weston's shareholders the current value of its stock

Dressler, Inc., is planning on merging with Weston Foods. Dressler will pay Weston's shareholders the current value of its stock in shares of Dressler stock. Dressler's currently has 6,200 shares of stock outstanding at a market price of $30 a share. Weston's has 2,200 shares outstanding at a price of $25 a share. How many shares of stock will be outstanding in the merged firm?    A.  6,840 shares B.  7,061 shares C.  7,200 shares D.  8,033 shares E.  8,609 shares Number of shares = 6,200 + [(2,200 × $25)/$30] = 8,033 shares

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Alpha is planning on merging with Beta. Alpha will pay Beta's shareholders the current value of their stock in shares of Alpha. Alpha currently has 4,200 shares of stock outstanding at a market price of $40 a share. Beta has 2,500 shares outstanding at a price of $18 a share. The after-merger earnings will be $8,800. What will the earnings per share be after the merger?    A.  $1.61 B.  $1.65 C.  $1.75 D.  $1.81 E.  $1.86 Number of shares = 4,200 + [(2,500 × $18)/$40] = 5,325 Earnings per share = $8,800/5,325 = $1.65

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Sue's Bakery is planning on merging with Ted's Deli. Sue's will pay Ted's shareholders the current value of their stock in shares of Sue's Bakery. Sue's currently has 4,500 shares of stock outstanding at a market price of $19 a share. Ted's has 2,300 shares outstanding at a price of $20 a share. What is the value of the merged firm?    A.  $106,500 B.  $107,800 C.  $125,400 D.  $131,500 E.  $131,600 Value of merged firm = (4,500 × $19) + (2,300 × $20) = $131,500