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Construct the post-merger balance sheet

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Reference no: EM133110818

Question - Consider the following pre-merger information about Company A and Company B:

 

Company A

Company B

Total earnings

$96,999

$52,899

Shares outstanding

47,599

36,699

Per-share values:

 

 

Market

$59

$29

Book

$27

$19

Assume that Company A acquires Company B by paying cash for all the shares outstanding at a merger premium of $6 per share. Assuming that neither firm has any debt before or after the merger, construct the post-merger balance sheet for Company A assuming the use of the acquisition method.

Reference no: EM133110818

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