Question
Assume the following financial data for the Noble Corporation and Barnes Enterprises: Noble Corporation Barnes Enterprises Total earnings $ 1,752,000 $ 7,220,000 Number of shares
Assume the following financial data for the Noble Corporation and Barnes Enterprises:
| Noble Corporation | Barnes Enterprises | |||||
| Total earnings | $ | 1,752,000 | $ | 7,220,000 | ||
| Number of shares of stock outstanding | 730,000 | 3,610,000 | ||||
| Earnings per share | $ | 2.40 | $ | 2.00 | ||
| Price-earnings ratio (P/E) | 20 | 24 | ||||
| Market price per share | $ | 48 | $ | 48 | ||
If all the shares of the Noble Corporation are exchanged for those of Barnes Enterprises on a share-for-share basis, what will postmerger earnings per share be for Barnes Enterprises? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Lords Of Finance The Bankers Who Broke The World
Authors: Liaquat Ahamed
1st Edition
0143116800, 978-0143116806
