Question
30.The post merger P/E of Turnbull Corporation is predicted to be 15. The EPS for the previous four quarters totals $2.00 per share for Turnbull.
30.The post merger P/E of Turnbull Corporation is predicted to be 15. The EPS for the previous four quarters totals $2.00 per share for Turnbull. The number of shares outstanding is 100,000. The earnings valuation of Turnbull is
a.$1 million
b.$3 million
c. $5 million
d. none of the above
32.Hawthorne Corporation has a valuation of $1 million. The price per share is $10. The shares outstanding are
a.100
b.1000
c.100,000
d.none of the above
33. Lawson Corporation has 200,000 shares outstanding. The price per share is $20 The market valuation of Lawson is
a.$2 million
b.$3 million
c.$4 million
d. none of the above
36. Commonwealth Corporation is planning an equity issue to finance a new project. Commonwealth plans to issue 100,000 shares of stock. Projected after-tax earnings after completion of project are $2million and shares outstanding will total 200,000. What is the projected EPS after completion of the project?
a. $6
b .$8
c. $10
d. none of the above
38. Dusty Company is planning an equity issue to finance a new project. Dusty plans to issue 100,000 shares of stock. Projected EPS after completion of the project is $10 and total shares outstanding will be 200,000. What are the projected after-tax earnings after completion of the project?
a. $1 million
b. $2 million
c. $3 million
39. Which of the following leans away from the selection of debt for financing?
a. control
b. income
c. flexibility
d. none of the above
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