Question
5.Assume the following financial data for Noble Corporation and Barnes Enterprises: Noble Barnes Total Earnings$1,525,000$4,820,000 Number of shares of stock outstanding610,0002,410,000 EPS ($/share)2.52.0 P/E ratio2025
5.Assume the following financial data for Noble Corporation and Barnes Enterprises:
NobleBarnes
Total Earnings$1,525,000$4,820,000
Number of shares of stock outstanding610,0002,410,000
EPS ($/share)2.52.0
P/E ratio2025
Market Price per share ($/ share)5050
If all shares of the Noble Corporation are exchanged for those of Barnes Enterprises on a share-for-share basis, what will post merger earnings per share be for Barnes Enterprises?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
