Question
Assume the following financial data for the Noble Corporation and Barnes Enterprises: Noble Corporation Barnes Enterprises Total earnings $ 1,540,000 $ 6,620,000 Number of shares
Assume the following financial data for the Noble Corporation and Barnes Enterprises:
Noble Corporation Barnes Enterprises Total earnings $ 1,540,000 $ 6,620,000
Number of shares of stock outstanding 700,000 3,310,000
Earnings per share $ 2.2 $ 2.0
Price-earnings ratio (P/E) 30 33
Market price per share $ 66 $ 66
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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