Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the following financial data for the Noble Corporation and Barnes Enterprises: Noble Corporation Barnes Enterprises Total earnings $ 1 , 6 3 8 ,

Assume the following financial data for the Noble Corporation and Barnes Enterprises:
Noble
Corporation Barnes
Enterprises
Total earnings $ 1,638,000 $ 5,220,000
Number of shares of stock outstanding 630,0002,610,000
Earnings per share $ 2.60 $ 2.00
Price-earnings ratio (P/E)2026
Market price per share $ 52 $ 52
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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Judith Baker

2nd Edition

0763726605, 9780763726607

More Books

Students also viewed these Finance questions