Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC Corporation plans to acquire LMN Company. RST has total earnings of P 500,000 while LMN has P200, 000. Number of shares outstanding is 100,000
ABC Corporation plans to acquire LMN Company. RST has total earnings of P 500,000 while LMN has P200, 000. Number of shares outstanding is 100,000 shares and 60,000 shares respectively. Their earnings per share are P4 and p5. Price earnings ratio is 8 and 6, respectively and both company shares have the same market price of P 30.
What is the new earnings per share of ABC?
Answer: P____
How much is the total earnings of ABC?
Answer: P_____
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
