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To address your last question first; no, this is NOT how feral cats are usually dealt with. Many places have people who actually care for the feral cats, and put out food for them, and if they catch them, then they are neutered so they don't create more feral kittens.
There is a lot of outrage about this woman killing the cat in such an inhumane manner (or killing the cat at all), and it is likely that she will face charges for doing it. The fact that it was a neighbor's cat may or may not make a difference, and might be hard to prove that she actually killed their cat since orange and white are very common colors for a tomcat.
I think that the worst punishment that she will have is one that she has caused for herself. She has destroyed her whole career, probably her whole life, and also that of her parents and family.
Since the picture was taken by her mother, people are trying to have her fired from her job, as well.
This whole family may have to move out of the area, and try to find a place where no one would regognise them.
This will probably be much worse than the fine that she will get for killing the cat.
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