Solution-What will earnings per share be subsequent to the

What will earnings per share be subsequent to the merger

Assignment Help Finance Basics

Reference no: EM13573921

Earnings per Share. The following data concerning companies A and B are presented:

	Company A	Company b
Net income	$35,000	$50,000
Shares outstanding	5,000	10,000
Earnings per share	$7.00	$5.00
P/E ratio	10	14
Market price	$70	$70

Company B is the acquiring company, exchanging its shares on a one-for-one basis for company A's shares. The exchange ratio is based on the market prices of company A and company B stock.

(a) What will earnings per share be subsequent to the merger?

(b) What is the change in earnings per share for the stockholders of companies A and B?

Reference no: EM13573921

Questions Cloud

Holt company purchased a computer for 10290 on january 1 : holt company purchased a computer for 10290 on january 1 2011. straight-line depreciation is used based on a 5-year

For each case determine a the exchange ratio in shares and : exchange ratio. the following information is providedcasemarket price per shareof acquiring companymarket price per

Costs classified as batch-level costs should depend on the : costs classified as batch-level costs should depend on the number of batches processed rather than on the number of

Georgia products inc completed and transferred 228000 : georgia products inc. completed and transferred 228000 particle board units of production from the pressing department.

What will earnings per share be subsequent to the merger : earnings per share. the following data concerning companies a and b are presentedcompany acompany bnet

To complete the unit sales forecast use your student : the bear corporation will begin business operations on january 1 2012. below is the anticipated sales budget in

How often do you look at a clock or watch during the day is : answer both questions with a minimum of 70 words per question1how often do you look at a clock or watch during the day?

Would theactivities at a manufacturer of canned soup be : would theactivities at a manufacturer of canned soup be best classified as unit-level batch-level product-level or

Due to merger negotiations company r offers 50 a share the : acquisition by exchanging stock. company r wishes to acquire company s. company rs stock sells for 100 per share.

User Account

All Pages

What will earnings per share be subsequent to the merger

Reference no: EM13573921

Reference no: EM13573921

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT