The following facts apply to two companies, A and B, whose operations are completely independent. Assume that
Question:
The following facts apply to two companies, A and B, whose operations are completely independent.
Assume that A acquires B in exchange for 500,000 shares of common stock.
a. What will be the new earnings per share (EPS) for A?
b. What would you expect the new P/E ofA (after acquisition) to be? Assume a rational market.
c. What will be the total market value of A’s common stock after the acquisition? Assume a rational market.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a New Earnings per Share EPS for A First calculate the combined earnings of A and B after the acquis...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
11+ Reviews
14+ Question Solved
Related Book For 
An Introduction To Accounting And Managerial Finance A Merger Of Equals
ISBN: 9789814273824
1st Edition
Authors: Harold JR Bierman
Question Posted:
