Answer:
the post merger EPS is $22
Explanation:
The computation of the post merger EPS is shown below:
The post merger EPS is
= (Combined earnings after the merger) ÷ (total shares)
= $1,760,000 ÷ (30,000 + 50,000)
= $1,760,000 ÷ $80,000
= $22
Hence, the post merger EPS is $22
Answer: c. Increase in quantity supplied.
Explanation: an increase in the price of a good would lead to an increase in the quantity of the good supplied. This follows the fundamental economic theory of supply or the law of supply which states that all else being equal, an increase in the price of good and services would lead to a corresponding increase in the quantity of the good or services supplied. This is quite true and the rationale behind it is the potential increase in returns per unit of good sold to the supplier as a result of the increase in price.
Answer:
c. the cost of driving the next 25 miles, but not the cost of driving the first 500.
Explanation:
500 miles already have been driven and all the cost incurred before is considered to be sunk cost for the decision to be made. Any additional cost to change the decision or make the decision will be the opportunity cost of that event. In this example only 25 miles cost will be an opportunity cost of visiting the attraction never been visited before.