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A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows: On a share-for-share exchange basis,
A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows: On a share-for-share exchange basis, what will the postmerger earnings per share be? If Mickey Corporation pays a 25 percent premium over the market value of Minnie Corporation, how many shares will be issued? With the 25 percent premium, what will the post merger earnings per share be? Assume a 100 percent premium will be paid and there is a 25 percent synergistic benefit to total earnings from the merger. Will the post merger earnings go up or down based on your calculations
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