Calculate the earnings per share and price earnings ratio

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Reference no: EM131784313

Problems

1. Three years ago you purchased four thousand shares of Metwa, Inc. for $17 per share. Today Metwa, Inc. is repurchasing its shares through a fixed price tender offer at a price of $45 per share. What are the after tax proceeds you will receive if the capital gains tax is 20%?

2. Why would the management of a company undertake a reverse split?

3. Use the following information to complete question:

Williams Tools Corp (Public Co)

Category Value

Market Price Per Share $12.25

Shares Outstanding 200 million

Debt $600 million

EBITDA $456 million

Net Income $4226 million

Siver Machinery Co.

Category Value

Debt $533 million

EBITDA $250 million

Debt $96 million

Calculate the earnings per share and the price earnings ratio for Williams.

Reference no: EM131784313

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