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Find what will the earnings per share the combined entity be

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Reference no: EM132932331

Problem 1: Angela Ltd has earnings of $200,000, has 200,000 shares on issue, and the shares are priced at $10 per share. Bronwyn Ltd has earnings of $120,000, has 100,000 shares on issue, and the shares are priced at $5 per share. What will the earnings per share the combined entity be if Angela Ltd issues one of its shares for every two Bronwyn Ltd shares?

a) $3.00
b) $1.00
c) $1.28
d) $1.20
e) None of the above answers is correct.

Reference no: EM132932331

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