Solution-What is the amount of the earnings per share of

What is the amount of the earnings per share of firm AB

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Reference no: EM132909769

Question - Shareholders in firm B are paid the market value of their firm in shares of stock from firm A. The earnings of the combined firm are $68,000. Information on each firm, prior to merger is as follows:

	Firm A	Firm B
Number of outstanding shares	30000	22000
Price per share	$32.00	$25.00
Debt	$0	$0
Total earnings	$36,000.00	$30,000.00

Required - What is the amount of the earnings per share of firm AB?

Reference no: EM132909769

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What is the amount of the earnings per share of firm AB

Reference no: EM132909769

Reference no: EM132909769

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