Calculate the number of shares to be issued by Intous Ltd

Assignment Help Managerial Accounting
Reference no: EM133161106

Question - World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information

 

World Enterprises

Intous Ltd

Net Income

R50

R10

Shares outstanding

5000

2000

Earnings per share

R10

R5

Market price per share

R150


Price earnings ratio

R15


Required -

a. Calculate the number of shares to be issued by Intous Ltd.

b. Calculate combined earnings per share of both World Enterprise and Intous Ltd.

c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio).

d. Compare the current and paid P / E ratios.

Reference no: EM133161106

Questions Cloud

Multiphase screening program : Applicant Screening: what type of effective multiphase screening program appropriate to the position requirements, integrating various technology-enabled screen
Difficulty in changing organizational culture : Considering the difficulty in changing organizational culture, why does Hillton's management seem to have been successful in this transformation?
Creating stress free environment in the workplace : Identify and explain sub topics relating to creating stress free environment in the workplace?
Receiving chemotherapy and radiation : Determine what condition(s) you would code and why. After discussing what conditions you would code, please provide the correct codes using your ICD-10-CM book.
Calculate the number of shares to be issued by Intous Ltd : World Enterprises is determined to acquire Intous Ltd through exchanging stocks. Calculate the number of shares to be issued by Intous Ltd
Establish a competitive global workforce : You are working in the global Human resource team of a Chinese multinational company. Your company plans to open a new subsidiary in United Kingdom
Describe the features of own informal succession plan : Although the chapter specifically addresses CEO succession planning, some form of succession planning is also highly desirable for management positions at all l
Describe the process and goals of storytelling : Describe the process and goals of storytelling in the mediation process, and the role the manager plays in facilitating storytelling
Calculate the amount to report on each line in the table : Calculate the amount to report on each line in the table below, including Slava's 2021 Net Income for Tax Purposes and Taxable Income

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd