User Account

All Pages

What is the new pe ratio for purple acre

Assignment Help Financial Accounting
Reference no: EM133373432

Question: Suppose that Red Acre would like to buy Blue Acre to create the conglomerate Purple Acre. Suppose that there are no gains to the merger.

  Red Acre Blue Acre
EPS 4 3.5
Price 19 22
PE 22 17
Number of Shares 97,000 110,000
Total Earnings 388,000 385,000
Total Market Value 1,843,000 2,420,000

What is the new PE ratio for Purple Acre?
How many new shares are created to issue to the Blue Acre shareholders?
What is the exchange ratio?

 

Reference no: EM133373432

Questions Cloud

Bond maturity : What's the bond's current price if the yield to maturity is 8.52 percent?
Compare he value of purchase option to hasperat calculated : Compare he value of the purchase option to Hasperat calculated above to the value of eliminating the option to Koenig. You may assume that Koenig's desire
What is a financial market how are financial markets : What is a financial market? How are financial markets differentiated from markets for physical assets? b. Differentiate between money markets and capital market
Write a plan sheet a story essay about a person : Write a Plan Sheet a story essay about a person becoming a father at Age 21 in College as a Freshman a guide to Overcoming Challenges and Embracing Change.
What is the new pe ratio for purple acre : What is the new PE ratio for Purple Acre? How many new shares are created to issue to the Blue Acre shareholders? What is the exchange ratio?
Describe three key strategic risks that should be considered : Describe three key strategic risks that should be considered in this year's audit plan of engagements. Identify very clearly three audit engagements to address
What is your contribution margin : What is your contribution margin? How many cabinets must you make each month to break even? What is your total monthly revenue if you want to earn a $2,00
Calculate the all-in-cost of the loan with the interest rate : Suppose Polaris decides to engage in an interest rate swap in which Polaris would pay fixed 5% and receive LIBOR on a notional value of $50 million.
What is the implied p or e multiple for magna international : With a market cap of $2.24 billion and sustainable earnings of $960 million, what is the implied P/E multiple for Magna International?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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