Earnings per share for all gold mining

Assignment Help Financial Accounting
Reference no: EM133239578

Consider the following pre-merger information about a bidding company (All Gold Mining) and a target company (Silver Enterpises) at the end of the year 2020: All Gold Mining had 600 000 ordinary shares outstanding and had earnings of R1 600 000. All Gold Mining's earnings are expected to grow at an annual rate of 5%. Silver Enterpises had 100 000 ordinary shares outstanding and had earnings of R200 000. Silver Enterpises' earnings are expected to grow at an annual rate of 10%.

1. Calculate the next 5 years' (2020-2024) earnings per share (EPS) for All Gold Mining before the merger.

2. Calculate the next 5 years' (2020-2024) earnings per share (EPS) for Silver Enterpises before the merger.

3. Calculate the next 5 years' (2020-2024) earnings per share (EPS) for Silver Enterpises post- merger at 1.1 exchange rate.

4. Should Silver Enterpises continue with the merger? Provide a reason for your answer.

Reference no: EM133239578

Questions Cloud

Causing severe consequences to business operations : Similarly, you are not able to retain your existing truck driver employees, and this is causing severe consequences to your business operations.
Why are professional dispositions of learners important : Why are Professional Dispositions of Learners important in educational settings? Provide examples from your past educational experience
Lola asks tough questions : Lola majored in business administration with a concentration in marketing, and she is delighted with her career progress. She joined the frozen-food division of
Write up a memo to senior management outlining your plan : Write up a memo to senior management outlining your plan - what your message should be, how you'd get it across on TikTok, what the timing would be, etc
Earnings per share for all gold mining : Calculate the next 5 years' (2020-2024) earnings per share (EPS) for All Gold Mining before the merger.
What reasons can an employee raise for refusing the vaccine : HRMT413 - Employment and Labor Relations Assignment - American Public University System. What reasons can an employee raise for refusing the vaccine
Why would team agree to deferred contract : Why would a team agree to a deferred contract? What is a lesson that current professional athletes could learn from Bobby Bonilla?
Detailed explanation about budgeting : Chandan just finished his day working as a structural engineer. Find Budgeting and give a detailed explanation about budgeting.
Describe strength and limitation of this type of course : Criminal Justice Discussion - describe one strength and one limitation of this type of course for the delivery of instruction

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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