Question
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
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 | 630,000 | 2,610,000 | ||
| Earnings per share | $ | 2.6 | $ | 2.0 |
| Price-earnings ratio (P/E) | 20 | 26 | ||
| 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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
