Question
After analyzing the particulars of firms A and B and their proposed merger, comment on the desirability of the merger: Firm A Firm B $16.00
After analyzing the particulars of firms A and B and their proposed merger, comment on the desirability of the merger:
| Firm A | Firm B | |
| $16.00 | Price per share | $10.00 |
| 8 | P/E ratio | 5 |
| 1,000 | Shares outstanding | 1,000 |
Firm A will purchase firm B by offering 625 shares of firm A. the merged firms are expected to be worth $26,000. Be sure to mention EPS of the merged entity, and so on.
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The ACT Guide To Ethical Conflicts In Finance
Authors: Andreas Prindl, Bimal Prodhan
1st Edition
1855732564, 978-1855732568
